agenda 166th meeting of state level bankers’ … · total agriculture credit for rrbs and...

AGENDA 166TH MEETING OF STATE LEVEL BANKERS’ COMMITTEE, MADHYA PRADESH 1


Table of Contents Particulars Page Abbreviations 6 Adoption of the minutes of the 164/165th SLBC meeting held on 18.09.2017 7 AGENDA NO-1 Action Taken Report of the 164/165th meeting held on 18.09.2017 8-9 AGENDA NO-2 Review of Banking Developments in Madhya Pradesh in Q-2 of FY 2017-18 10-13

a) Key Banking parameters of the state as on 30.09.2016 vis-à-vis 30.09.2017 10 b) Performance highlights of Q-2 of FY 2017-18 11-12 c) Sectorial deployment of Bank’s credit-September 2017 13

AGENDA NO-3 Review of performance under Annual Credit Plan Q-2 of FY 2017-18 14-16

a) Highlights 14-15 b) Agency wise ACP performance FY 2017-18 up to September 30, 2017 15-16

AGENDA No-4 Levy of Penal charges on non-maintenance of minimum balances in savings Bank accounts of beneficiaries of different pension schemes of the Government 17-18

a) Background 17 b) Features of Basic Savings Bank Deposit Accounts (BSBDA) 17 c) Banking facility for senior citizens and differently abled persons 18

AGENDA No-5 Relief measures in drought affected areas 19-21

a) Government notification 19 b) Gist of RBI guidelines for relief measures by Banks in area affected 19-20

by Natural Calamity c) Action by various stake holders 21

AGENDA No-6 Mukhya Mantri Krishak Udyami Yojana & amendments in 22-24 Mukhya Mantri Self-employment Schemes

a) Mukhya Mantri Krishak Udyami Yojana 22 b) Mukhya Mantri Yuva Udyami Yojana 22 c) Mukhya Mantri Swarojgar Yojana 23 d) Mukhya Mantri Arthik Kalyan Yojana 23 e) Growth pattern in flagship employment generation programmes of the 24

State government during last three years & current fiscal AGENDA No-7 Progress under other government sponsored schemes 25-29

a) Prime Minister Employment Generation Programme (PMEGP) 25 b) National Rural Livelihood Mission (NRLM) 26 c) Pradhan Mantri Mudra Yojana (PMMY) 26 d) Stand-up India schemes (SUI) 27 e) Pradhan Mantri Awas Yojana (PMAY)-Urban 28 f) Issues related to government sponsored schemes 29


Particulars Page AGENDA No-8 Opening of Banking Outlets in villages having population 5000 & above 30 AGENDA No-9 Credit Deposit Ratio 31-33

a) Important indicators 31 b) District with CD ratio below 40% as on 30.09.2017 32 c) Action taken report on minutes of special DLCC meeting held on 27.04.2017 32-34

At Umaria-status as on 30.11.2017

AGENDA No-10 Digital Transactions 34

a) Status report country and Madhya Pradesh 34 AGENDA No-11 Financial Inclusion 35-39

a) Status as on 30.11.2017 35 b) Bank wise Aadhaar authentication status as on 30.11.2017 35-36 c) Aadhaar seeding process to be followed for obtaining consent from the customer 36 d) Opening of Aadhaar enrollment centres in M.P.-status as on 30.11.2017 37 e) Performance of Rural Self Employment Training Institutes (RSETIs) 38 f) Opening of RSETI in agar Malwa district 38 g) Status of pending claims of RSETIs with DRDA/NRLM for settlement 39 h) Social Security Schemes-status 39 i) Atal Pension Yojana-status 39

AGENDA No-12 Non-Performing Assets 40-44

a) Status as on 30.09.2017 40 b) Sector wise NPA 40 c) Non-performing Assets under government sponsored schemes 41-42 d) Revenue Recovery Certificates (RRCs) 42 e) BRISC status period from (01.04.2010 to 10.12.2017) 43 f) Pending applications with Dist. Administration for taking physical possession of the

Properties under Sec-14 of SARFAESI Act as on 30.11.2017 44 AGENDA No-13 Micro, Small & Medium Enterprises (MSMEs) 45-47

a) Status as on 30.09.2017 45 b) Performance under Annual Credit Plan FY 2017-18 under MSMEs 46 c) Framework for Revival and Rehabilitation of Micro, Small & Medium Enterprises 47 d) Suggestions for increasing MSME financing and resolving 47

bottleneck faced by MSMEs48


Particulars Page AGENDA No-14 Other Agenda 48-49

a) Engagement of Lead District Managers (LDMs) in activities other than 48 Prescribed by RBI

b) On-line web portal for data collection for DCC/DLRC meetings 49 c) Automatic SMS alert facility in SAMAST portal 49

AGENDA No-15 50-52

a) Self Help Groups bank linkages 50 b) Start-up village Entrepreneurship Development Programme (SVEP) 50 c) NPA in SHGs in Madhya Pradesh-Study Findings by NABARD 50-51 d) Credit facility to Minority Communities, SC/ST & Women 51-52

AGENDA No-16 Education Loans 53

a) Status in Madhya Pradesh b) Central Scheme to provide Interest Subsidy on education loans c) Higher Education loan Guarantee Scheme & Higher Education Loan

Settlement Scheme d) FY target vis-à-vis achievement up to September 2017

AGENDA No-17 Agenda of National Scheduled Caste Finance & Development Corporation 54 Any other agenda with permission of the Chair


DATA TABLE

Table

No. Contents of Data Table showing progress in Madhya Pradesh as on 30.09.2017

Page

No.

1 Bank wise position of branches/ATMs as on 30.09.2017 55

2 Centre wise information regarding Deposits, Advances and CD Ratio 56

3 Bank wise total Deposits, Advances and CD Ratio 57

3i District wise Credit Deposit Ratio as 0n 30.09.2017 58

4 Bank wise outstanding of Agriculture under Priority Sector advances 59

5 Bank wise outstanding of MSMEs under Priority Sector advances 60

6 Bank wise outstanding of Export Credit, Education, Housing, Social Infrastructure,

Renewable Energy & others under Priority Sector advances 61

7 Advances to Weaker Sections 62

8 Bank wise outstanding of Non-Priority Sector advances 63

9(i) Target and ACP FY 2017-18 achievement of Farm Credit & crop loans under Agriculture 64

9(ii) Target and ACP FY 2017-18 achievement under Agriculture Infrastructure, Ancillary

activities under Agriculture 65

10 Target and ACP FY 2017-18 achievement of MSMEs under Priority Sector 66

11(i) Target and ACP FY 2017-18 achievement of Export Credit, Education & Housing under

Priority Sector 67

11(ii) Target and ACP FY 2017-18 achievement of Social Infrastructure, Renewable Energy

& others under Priority Sector 68

12 Target and ACP FY 2017-18 achievement under Non-Priority Sector 69

13 Bank wise position of NPA 70

14 Bank wise NPA under Priority Sector advances 71

15 Bank wise NPA under Non-Priority Sector advances 72

16 Bank wise NPA under Govt. Sponsored Schemes 73

17 Progress under Kisan Credit Card 74

18 Progress under Higher Education loans 75

19 Position of SHGs bank linkage programme 76

20 Loans outstanding to Minority Communities 77

21 Loans disbursed to Minority Communities 78

22 Loans outstanding to SC/STs 79

23 Loans disbursed to SC/STs 80

24 Advances to women 81

25 Bank wise progress under Pradhan Mantri Jan Dhan Yojana 82

26 Bank wise progress under Atal Pension Yojana 83

27 Bank wise progress under Social Security Schemes 84

28 Progress under Rural Self Employment Training Institutes (RSETIs 85

29 Bank wise progress under MUDRA Yojana 86

30 Bank wise progress under Standup India Scheme 87

31 District wise progress under Standup India Scheme 88

32 Annexure-1 (State Governments’ Notification on Drought) 89


ABBREVIATION

ACP : Annual Credit Plan

ACS : Additional Chief Secretary

APC : Agriculture Production Commissioner

APY : Atal Pension Yojana

BRISC : Bank Recovery Incentive Scheme

CA : Chartered Accountants

CAGR : Compound Annual Growth Rate

CDR : Credit Deposit Ratio

DCC : District Consultative Committee

DCCB : District Central Cooperative Banks

DFS : Department of Financial Services

EWS : Economically Weaker Sections

FLCC : Financial Literacy Credit Counseling Centres

GCA : Gross Cropped Area

GDP : Gross Domestic Products

GLC : Ground Level Credit

GVA : Gross Value Added

HFC : Housing Finance Company

IBC : Indian Bankruptcy Code

JLG : Joint Liability Group

KCC : Kisan Credit Card

LDM : Lead District Manager

LWE : Left Wing Extremism

M.M : Margin Money

MIG : Middle Income Group

MMAKY : Mukhya Mantri Arthik Kalyan Yojana

MMSY : Mukhya Mantri Swarojgar Yojana

MMYUY : Mukhya Mantri Yuva Udyami Yojana

MSME : Micro, Small & Medium Enterprises

MSP : Minimum Support Price

NPA : Non Performing Asset

NSSO : National Sample Survey Office

PMAY : Pradhan Mantri Awas Yojana

PMJDY : Pradhan Mantri Jan Dhan Yojana

PMJJBY : Pradhan Manti Jeevan Jyoti Bima Yojana

PML : Prevention of Money Laundering

PMMY : Pradhan Mantri Mudra Yojana

PMSBY : Pradhan Mantri Suraksha Bima Yojana

PSL : Priority Sector Lending

RRB : Regional Rural Bank

RRC : Revenue Recovery Certificate

SARFAESI : Securitization & Reconstruction of Financial Assets & Enforcement of Security Int. Act

SCB : Scheduled Commercial Banks

SHG : Self Help Group

SLBC : State Level Bankers’ Committee

SOF : Scale of Finance

SUI : Stand-up India

UIDAI : Unique Identification Authority of India

TReDS : Trade Receivables Discounting System

GeM : Government e-Market Place


ADOPTION OF THE MINUTES OF THE 164th /165th SLBC MEETING HELD ON 18.09.2017

The Minutes of 164th /165th meeting of SLBC held on 18th September 2017 were circulated to

all concerned and were uploaded on website of SLBC (www.slbcmadhyapradesh.in ) and

website of Directorate of Institutional Finance, Government of Madhya Pradesh

(www.dif.mp.gov.in). The actionable points have been indicated for desired actions. SLBC

received a communication from NABARD, Bhopal for modification in point no. 5-G of the minutes

as under:

“CGM, NABARD suggested that, to enable Lead Banks to organize the Bank-Prospective

Entrepreneurs Interface Meeting at block level, wherein all banks representatives will be invited,

it is better to conduct the same after the BLBC meeting where all stakeholders including

representative of Banks, NABARD, DIC etc. will also be present.”

NO OTHER AMENDMENTS/SUGGESTIONS WERE RECEIVED THEREFORE, THE HOUSE IS

REQUESTED TO CONFIRM THE ABOVE CHANGES AND ADOPT THE MINUTES.

http://www.slbcmadhyapradesh.in/

http://www.dif.mp.gov.in/


AGENDA NO-1

ACTION TAKEN REPORT ON ACTION POINTS OF 164th /165th SLBC MEETING

HELD ON 18.09.2017

Sr. Agenda Item/Action Points Action Taken Report

1 The Chief Secretary, Govt. of M.P mentioned that

scheduled commercial banks need to increase their CD

ratio.

CD ratio of Scheduled Commercial Banks (SCBs)

was 67.69% as of June-2017, which is increased

to 70.21% during Sep-17 quarter.

2 Export Credit exhibited negative Y-O-Y growth during

June 2017 quarter. Banks were advised to focus on this

sector as state is large producer of oilseed.

• Export credit registered a growth of 18.27%

year on year during Sep-17 quarter. The

fertile Malwa plateau produces around 20%

of Country’s soyabean. Around 80% of the

crop used are exported to other countries in

the form of soyabean oil/meal.

• As of 30.09.2017, only five banks had

exposure towards export credit. In view of

potentiality available at SEZs, Garment

industry, spices park and soya oil, banks

need to explore possibilities for increasing

the export credit.

3 Performance of banks in the state under agriculture,

priority sector, small & marginal farmers and weaker

sections was above the Norm as on June 30, 2017.

However, it was marginally lower for micro enterprises

of MSME sector. Banks need to extend credit to this

sector.

Credit deployment to micro enterprises has

shown growth of 15.72% year on year. During

current financial year, it has also shown growth

of 2.83%. The State Government has been

supporting entrepreneurs/ Self-Employment by

providing a conducive environment for job

creation and entrepreneurship. Further, bankers

are continuously extending their support, which

was resulted in growth in micro enterprises.

4 It was suggested to from a task force on Standup India

scheme. The task force will examine the reasons of low

progress specially in tribal dominated districts and

submit the ways for improvement before the next SLBC

meeting.

The Industry Commissioner, Govt. of M.P. has

given the consent about the constitution of the

proposed task force. However, formal meeting is

yet to be convened.

5 Opening of “Banking Outlets” in villages having

population more than 5000 and above-The house

approved the allotment of 32 remaining unbanked

villages to the banks based on respective Sub Service

Areas (SSAs) of the centres. Concerned banks were

advised to open “Banking Outlets” latest by 31st

December 2017.

Out of 32 remaining unbanked centres, 28

centres have been covered through Banking

Outlets manned by BCs till 15th December 2017.

4 more unbanked centres are yet to be covered.

6 The agriculture growth rate of the state in the last five

years has been around 20% which is near the growth

rate of agriculture credit by Banks. However, Banks

were asked to extend loans to farmers for capital

formation also.

As of 30th September 2017, ratio of term loan to

total agriculture credit was 24.72% for all the

Banks. RRBs and cooperative Banks are required

to increase their investment credit loans in

agriculture so that it can be increased for the

state. As of 30th Sep-17, ratio of term loan to

total agriculture credit for RRBs and cooperative

banks was 9.59% and 7.79% respectively.


7 Financial Inclusion

a) Monitoring of Business Correspondents through GPS

Banks were requested to submit the proposal to their

corporate offices for installing GPS tracking system for

business correspondents.

Action: All Concerned Banks

b) Appointment of Bank Sakhi as business

correspondent agents

Banks were advised to issue an advisory to their

Technical Service Providers (TSPs) to approach Bank

Sakhi when engaging BCs in the vacant SSAs (if any).

Action: All Concerned Banks

a) Some major banks viz. SBI, BOB, BOI, CBoI

etc. have informed that they have

approached their corporate office for

installation of GPS tracking system for BCs.

b) 214 and 32 Bank Sakhis are appointed by

Narmada Jhabua Gramin Bank and Bank of

India respectively and they are also

working as business correspondents.

For other banks, it has been informed that

they have issued an advisory to their TSPs

to approach Bank Sakhi while engaging BCs

in the vacant SSAs.

8 Disposal of pending RRCs- the Chief Secretary stated

that there is a meeting scheduled on 27th September

2017 of Revenue Officers. Disposal of pending RRCs is

one of the agenda items of the meeting. Banks expected

that after this deliberation, disposal of pending RRCs

would be accelerated.

• Data of BRISC portal shows that 1753 RRCs

of Rs. 1.04 crore were disposed of by the

District Administration during a year (From

22.11.2016 to 21.11.2017) as against 4.28

lakh demand notices issued by Revenue

officers.

• BRISC portal shows that some districts did not

dispose of even a single RRC between the

periods 01.04.2010 to 22.11.2017. Those

districts are Anuppur, Ashoknagar, Bhind,

Datia, Dindori, Jabalpur, Jhabua, Khandwa,

Mandla, Sheopur, Sidhi, Singrauli & Umaria.

9 Disposal of pending cases under Sec-14 of SARFAESI

Act & providing Police escort in time for physical

possession of the properties- As of June 30, 2017, there

were 168 cases pending with District administration

under Sec-14 for physical possession of the properties.

The State Government assured banks to expedite

recovery proceedings.

Cases are still pending with district

administration. Detailed list is enclosed in agenda

no. 11.

10 Hon’ble Chief Minister mentioned that despite achieving

more than 100% targets by banks there

were some dissatisfaction among the beneficiaries. This

is because of more cases are being sponsored than

targets. He asked implementing agencies of the State

Govt. of above schemes, to sponsor quality cases to

banks equivalent to the targets, so that there should be

minimum rejection, otherwise, it gives the scope of

corruption.

In order to minimize rejection rate, MSME

department of the state government has issued

an instruction/advisory to implementing agencies

of the respective schemes to sponsor proposal of

125% of the target.

However, It has been reported that uniform

distribution of applications for loan under

different government sponsored schemes is still

not happening at the field level.


AGENDA NO-2

REVIEW OF BANKING DEVELOPMENT IN MADHYA PRADESH in Q-2 of FY 17-18

KEY BANKING PARAMETERS OF THE STATE AS ON 30.09.2016 vis-à-vis 30.09.2017

Outstanding amount in Rs. crores

Sr. Parameters Sep-16 Mar-17 Jun-17 Sep-17 Y-o-Y

variation

Y-o-Y

variation

%

%

Variation

from Mar-

17

1 Total number of Branches 7105 7218 7259 7294 189 2.66 1.05

2 Total number of ATMs 9266 9284 9316 9263 -3 -0.03 -0.23

3 Credit Deposit Ratio 72.38 71.25 69.84 73.88 1.50 1.50 3.70

4 Total Deposits 304013 336950 340488 348872 44859 14.76 3.54

5 Total Advances 220042 240064 237792 257744 37702 17.13 7.36

6 Total Business [4+5] 524055 577014 578280 606616 82561 15.75 5.13

7 Agriculture advances 75942 92362 85142 88963 13021 17.15 -3.68

8 Crop Loans out of total agriculture 52638 67659 62920 66973 14335 27.23 -1.01

9

% of Agriculture advances to Total

advances

[RBI Norm: 18%]

34.51 38.47 35.81 34.52 0.00 0.00 -3.95

10 MSME 37747 40887 40254 40898 3151 8.35 0.03

10a Micro Credit out of total MSME 15591 17546 17389 18042 2451 15.72 2.83

11

% of credit of Micro Enterprises to

Total advances

(RBI Norm: 7.5%]

7.09 7.31 7.31 7.00 -0.09 -0.09 -0.31

12 Export Credit 104 148 42 123 19 18.27 -16.89

13 Education 2044 2018 1880 1939 -105 -5.14 -3.91

14 Housing 18732 19363 19804 20677 1945 10.38 6.79

15 Social Infrastructure 139 141 118 103 -36 -25.90 -26.95

16 Renewable Energy 666 675 480 58 -608 -91.29 -91.41

17 Others 3372 2823 1326 6184 2812 83.39 119.06

18 Total Priority Sector Advances

[7+10+12+13+14+15+16+17] 138746 158417 149046 158945 20199 14.56 0.33

19

% of Priority Sector advances to

Total advances

[RBI Norm: 40%]

63.05 65.99 62.68 61.67 -1.39 -1.39 -4.32

20 Total Non-Priority Sector Advances 81296 81647 88746 98799 17503 21.53 21.01

21 Advances to small & marginal farmers 23239 26242 23370 25559 2320 9.98 -2.60

22

% of advances to small & marginal

farmers to total advances

[RBI Norm: 8% by Mar-17]

10.56 10.93 9.83 9.92 -0.64 -0.64 -1.01

23 Total NPA 13682 16445 18773 19895 6213 45.41 20.98

24 % of NPA to total advances 6.22 6.85 7.89 7.72 1.50 1.50 0.87

25 Advances to Weaker Sections 49259 55917 46647 51109 1850 3.76 -8.60

26

% of advances to Weaker Sections

to total Advances

[RBI Norm: 10%]

22.39 23.29 19.62 19.83 -2.56 -2.56 -3.46


PERFORMANCE HIGHLIGHTS OF Q-2 of FY 2017-18

BRANCH NETWORK

▪ Presently, banking services in the State are covered through a network of 7259 branches. Of

which 2667 (37%), 2320 (32%) and 2307 (32%) branches comprised rural, semi urban & urban

branches respectively.

▪ At the end of September 2017, net increase of 189 new bank branches have been registered

Y-o-Y.

▪ Out of 189 new branches opened during a year, 6 branches were opened in rural centres

whereas, 70 & 113 branches were opened in semi-urban and urban centres respectively

▪ Between June and September this year,

the total number of ATMs in the state

decreased by 53.

▪ ATMs of Bank of Baroda, PNB, HDFC and

Canara Bank were reduced from previous

quarter. Move towards digital transactions

led to reduction of ATMs. Due to low hits

and high operational costs some banks

closed their ATMs. ▪ In contrast, ATMs increased at a

compounded rate of 3.60 percent over the

past four years

DEPOSITS

Amount in crores

▪ Deposits grew by 3.54% during Apr- Sep’17 compared with 0.31% of growth witnessed in the

corresponding period last year. On a year on year basis too growth in deposits was 14.76%

against 0.38% last year and it is in line with last five years average growth.

▪ Out of total deposits of Banks as of September 30, 2017, the share of Public Sector Banks,

Private Banks, Regional Rural Banks and Cooperative Banks were 79.72%, 8.74%, 5.52% and

6.02% respectively.

▪ Out of total 278124 crore deposits of Public Sector Banks, share of CASA was 46.49% during

Sep-17.

302863 303070 304013

336949348872

Deposits growth

.Sep-15 .Mar-16 .Sep-16 .Mar-17 .Sep-17


CREDIT

Amount in crores

▪ Bank’s credit grew by 7.36% during Apr-Sep’17, higher compared with 5.84% growth recorded

in the comparable period last year. On a year on year basis too growth in credit was around

17.13%, higher than the growth of 12.77% witnessed in the last year.

▪ In total Bank’s credit, the share of Public Sector Banks, Private Banks, Regional Rural Banks and

Cooperative Banks were 67.33%, 16.73%, 4.44% and 11.50% respectively as of September

30, 2017.

BUSINESS

▪ Total business of the Banks increased to Rs. 606616 crore from Rs. 524055 crore registering a

growth of Rs. 82561 crore and in percentage terms 15.75% on Y-o-Y basis.

▪ This growth is in line with the previous growth rate of five years.

CREDIT DEPOSIT RATIO

▪ Credit-Deposit Ratio (CD ratio) of Madhya Pradesh has increased to 73.88% during Q-2 of

current fiscal from 72.38% in previous year i.e. Sep-16.

NON-PERFORMING ASSETS

▪ Total NPA of the banks stood at 7.72% of total credit as of September 30, 2017.

▪ Gross NPA for both Private Banks and PSBs continued to move in upward direction and it

increased by Rs. 6213 crore from previous year.

▪ The NPA ratio of PSBs, Private Banks, RRBs and Cooperative Banks was 7.51%, 3.09%, 13.93%

and 13.25% respectively as of Sep-17.

195127220042 220042

240064 257744

Credit growth

.Sep-15 .Mar-16 .Sep-16 .Mar-17 .Sep-17

63.60% 62.40%

141.86% 141.48%

61.27% 59.31%

101.72%

141.19%

0.00%

50.00%

100.00%

150.00%

.Sep-16 .Sep-17

CD Ratio- Agency wise

PSBs Pvt. Banks RRBs Coopeative


SECTORIAL DEPLOYMENT OF BANK’S CREDIT-SEPTEMBER 2017

▪ Credit to agriculture and allied

activities increased by 17.13% in

September 2017 year on year, less

than the increase of 19.38% in

September 2016.

▪ As of 30th September 2017, ratio of

term loan to total agriculture credit was

24.72%. It was 29.33%, 51.50%,

9.59% and 7.79% for PSBs, Private

Banks, RRBs and cooperative Banks

respectively.

▪ Credit to industry grew by 8.35 per

cent (y-o-y) in September 2017.

▪ Micro, small and medium segment

borrowings increased by 15.72%,

12.32% and 6.84% respectively.

▪ Within the services sector, credit offtake

by the real estate sector grew by 10.8

percent on a y-o-y basis, in September

2017 as compared to 6.94 percent in

the previous year. On a financial year

basis, it grew by 6.79 percent as

against a decline of 2.54 percent a

year ago.

▪ Export credit registered growth by

18.27% y-o-y, while education, social

infrastructure and renewable energy

sectors registered negative growth by

5.14%, 25.90% and 91.29%

respectively.

▪ Banks in Madhya Pradesh has shown

commendable performance under

Priority Sector Lending (PSL).

Percentage of priority sector loans to

total advances was 61.67% during

September 2017 quarter as against

the RBI Norm of 40%. In contrast to the

trend in total credit, the priority sector

lending registered Y-o-Y growth of

12.75 percent during September 2017

as against 18.07% last year.

▪ Under retail segment, personal loans

has shown growth of 6.88% year on

year.

Sectorial growth in credit

Amount in crore

Sector Sep-15 Sep-16 Sep-17 Y-o-Y Growth

Sep-16 Sep-17

Gross Bank Credit 195127 220042 257744 12.77 17.13

Agriculture & Allied Activities 63616 75942 88963 19.38 17.15

Industry 27662 37747 40898 36.46 8.35

Micro 14587 15591 18042 6.88 15.72

Small 14814 16252 18254 9.71 12.32

Priority Sector 117510 138746 158945 18.07 14.56

Housing 17432 18732 20677 7.46 10.38

Education 2051 2044 1939 -0.34 -5.14

Personal loans * 10162 10913 * 7.39

*Data not available

This agenda is put up for information/discussion


AGENDA NO-3

REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN Q-2 OF FY 2017-18 Amount in crores

Sr. No.

Sector

FY 2016-17 Financial Year 2017-18

[April to Sep-2016]

Target for FY

Achievement Q-2 of 16-17

Achi. % Target Achievement Achi.

% 2016-17 Q-2 of FY 2017-18

Amt. Amt. Amt. No. Amt. No. Amt. Amt.

1 Agriculture 80988 32142 39.69 3700878 94868 2944263 35977 37.92

1a Farm Credit 75927 30135 39.69 3418692 88374 2903346 33625 38.05

1b Crop loan out of 1a 58521 26137 44.66 2594512 67229 2666192 28943 43.05

1c Agriculture

Infrastructure 3184 579 18.18 187088 3905 8139 343 8.79

1d Ancillary Activities 1877 1428 76.08 95098 2589 32778 2009 77.61

2 MSME 16123 10408 64.55 444309 18441 249780 10809 58.61

2a Micro Enterprises * 4780 * 315927 11493 224149 5297 46.09

2b Small Enterprises * 3961 * 21729 2865 17466 3707 129.38

2c Medium Enterprises * 1165 * 11803 1101 1805 1446 131.36

2d KVIC * 46 * 11183 910 585 27 2.92

2e Other under MSME * 457 * 83667 2072 5775 333 16.05

3 Export Credit 425 175 41.12 2518 529 85 309 58.36

4 Education 1435 184 12.81 28775 1138 14086 211 18.51

5 Housing 5948 1783 29.98 188147 6996 52388 1769 25.29

6 Social Infrastructure 3914 15 0.39 90492 1410 51 11 0.77

7 Renewable Energy 271 1 0.31 31470 356 40 8 2.37

8 Others 0 2526 0.00 118795 3141 125899 1603 51.03

9 Total Priority Sector 109104 47233 43.29 4605384 126879 3386592 50697 39.96

10 Total Non-Priority Sector

3252 15146 465.74 156715 5076 826761 32796 646.10

11 Total Credit Plan (9+10)

112356 62379 55.52 4762099 131955 4213353 83493 63.27

Bank wise performance is shown in Table no. 9(i), 9(ii), 10, 11(i), 11(ii) & 12 HIGHLIGHTS

▪ The potential credit outlay FY 2017-18 for priority sector lending was estimated as Rs. 126879 crore, with an increase of 16.29% over the projections of the previous financial year.

▪ As against the target of Rs 1,31,955 crore (priority & non-priority), under Annual Credit Plan for FY 2017-18, an amount of Rs 83,493 crore was disbursed till September 30, 2017, recording an achievement of 63.27 percent above than corresponding period of last year, which was 55.52%.

▪ The Banks disbursed Rs 50697 crore to the priority sector against the target of Rs 126878 crore with achievement index of 39.96%, which is below the achievement of

43.29% during corresponding period of previous financial year.

▪ The Banks disbursed Rs 35977 crore to the agriculture sector against the target of Rs 94868 crore and achieved 37.92% of the target as against the achievement of 39.69% during same period of FY 2016-17. Achievement of Commercial banks, regional rural banks & cooperative banks were 40.58%, 22.36% & 39.12% respectively during Sep-17 quarter of current fiscal.

▪ Crop loans outlay of Rs. 67229 crores for FY 2017-18, constitutes a major share (51%) in the credit plan. The credit flow to this sector was Rs 28943 crore with achievement of 43.05 percent during Q-2 of FY 2017-18.


▪ Banks performed well under Ancillary activities category and achieved 77.61% of the targets during Sep-17. Loans up to Rs. 5 crore to co-operative societies of farmers, Loans for setting up of Agri-clinics and Agribusiness Centres, Loans for Food and Agro-processing up to an aggregate sanctioned limit of Rs100 crore per borrower , Loans to Custom Service Units , loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) etc. come under ancillary activities.

▪ Against the allocation of Rs 6996 crore credit for the housing sector (priority sector), the

credit off take was Rs 1769 crore at the end of second quarter of current fiscal and achievement index was 25.29%.

▪ Under MSME (priority sector), banks disbursed Rs. 10809 crores during second quarter of FY 2017-18 as against the target of Rs. 18441 crores and achieved 58.61% of the target lower than the achievement of 64.55% during same period of previous financial year.

▪ Performance under Social Infrastructure & Renewable Energy sectors are yet to be picked up as achievement during 2017-18 was only 0.77% & 2.37% respectively.

Agency wise ACP performance FY 2017-18 up to September 30, 2017

▪ Data suggests that private banks are disbursing move towards agriculture and MSME sectors and achieved 79.93% and 139.47% of their targets respectively for FY 2017-18 during first quarter of current fiscal. Achievement index of cooperative banks under agriculture sector was 39.12% up to September 30, 2017.

▪ Regional Rural Banks could achieve only 22.36% up to Sep 30, 2017 under agriculture. RRBs need to give a serious thought to the issue and increase finance to agriculture sector as they are among the drivers of agricultural credit in the State, which is primarily an agrarian economy.

36.7947.50

27.6419.36

37.88

22.3628.30

17.06

4.90

23.15

39.12

1.75 4.67 0.48

37.17

79.93

139.47

17.4723.88

88.94

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Agriculture MSME Housing Education Priority Sector

Chart showing agency wise ACP achievement % against target

FY 2017-18

PSBs RRBs Cooperative Banks Pvt. Banks


▪ The MSME sector contributes significantly to the State’s manufacturing output, employment and exports and is credited with generating high employment. The Government of Madhya Pradesh is poised to enable entrepreneurship through access to resources and support in terms of infrastructure and

incentives. The MSME sector in Madhya Pradesh has witnessed significant transformation in recent times wherein new business opportunities have come up and several diverse investments are being undertaken by the public and private sector players.

▪ Private Banks achieved 139.47% of their targets under MSME during Sep 30, 2017. However, targets given to private sector banks constitute only 15.21% of total targets under MSME, while it is 75.55% for Public Sector Banks. Looking to the performance of private sector banks, their targets need to be revised.

▪ While Public Sector Banks disbursed Rs. 1561 crores to housing sector with achievement index of 27.64%, Private sector Banks disbursement of Rs. 135 crores and achieved 17.47% of the targets. State Bank of India was in the top with disbursement of Rs. 873 crores.

▪ Public Sector Banks were pioneer in disbursement of education loans (Loans up to 10 lakh). Out of total disbursement of Rs. 211

crore during second quarter of current fiscal, they disbursed Rs. 183. Private Banks could disburse only Rs. 24 crores.

▪ Under priority sector, Public Sector Banks achieved 37.88 percent of the credit target for FY 17-18 and private banks achieved 88.94% of their targets. However, PSBs disbursed Rs. 30027 crores, Pvt. Sector Banks could disbursed only Rs. 8453 crores.

▪ Co-operative banks and Regional rural banks disbursed Rs. 9008 crores and 3208 crores under priority sector and achieved 37.17% & 23.15% of the target respectively.

This issue is presented for discussion.

http://www.business-standard.com/search?type=news&q=Banks


AGENDA NO-4

LEVY OF PENAL CHARGES ON NON-MAINTENANCE OF MINIMUM BALANCES IN

SAVINGS BANK ACCOUNTS OF BENEFICIARIES OF DIFFERENT PENSION SCHEMES

OF THE GOVERNMENT.

Background It has been brought to the notice of the State Government that due to wrong classification of the savings accounts, opened for the purpose of getting pension under different schemes of the Government, some banks are charging penalty on non-maintenance of minimum monthly balance. Further to this, some banks are collecting charges for receiving Social Security Pension. With regard to levy of penal charges on non-

maintenance of minimum balances in savings

bank accounts, the banks have been prescribing

the minimum balance to be maintained taking

into consideration the cost involved in

maintaining and servicing such accounts and also

levying specific charges, if minimum balance is

not maintained. There is, however, no uniform

approach in this regard.

RBI circular no. RBI/2014-

15/308/DBR.Dir.BC.No.47/13.03.00/2014-

15 dated 20.11.2014 on Levy of penal charges

on non-maintenance of minimum balances in

savings bank accounts stipulates that

• The policy on penal charges to be so

levied may be decided with the

approval of Board of the bank.

• Banks should inform customers

regarding the requirement of minimum

balance at the time of opening the

account in a transparent manner. Any

subsequent changes in this regard

should also be intimated to the account

holders.

• Instead of levying penal charges for

non-maintenance of minimum balance in

ordinary savings bank accounts, banks

should limit services available on such

accounts to those available to Basic

Savings Bank Deposit Accounts and

restore the services when the balances

improve to the minimum required level.

In the above matter Board of some banks

have already exempted pensioners, minors

and beneficiaries of social benefits from

government from the requirement of

minimum balance in savings account.

If, it is not exempted their ordinary savings

accounts may be converted into BSBDA (Basic

Savings Bank Deposit Accounts). This

account shall not have the requirement of any

minimum balance.

Features of BSBDA

a) While there will be no limit on the number

of deposits that can be made in a month,

account holders will be allowed a maximum

of four withdrawals in a month, including

ATM withdrawals.

b) Facility of ATM card or ATM-cum-Debit

Card.

c) Holders of 'Basic Savings Bank Deposit

Account' will not be eligible for opening any

other savings bank deposit account in that

bank. If a customer has any other existing

savings bank deposit account in that bank,

he / she will be required to close it within

30 days from the date of opening a 'Basic

Savings Bank Deposit Account'.

d) If such account is opened on the basis of

simplified KYC norms, the account would

additionally be treated as a 'Small Account'

and would be subject to conditions

stipulated for such accounts as indicated in

paragraph 2.7 of Master Circular of RBI no.

DBOD.AML.BC.No.11/14.01.001/2012-

13 dated July 02, 2012 on KYC norms.

The matter is presented for discussion.


BANKING FACILITY FOR SENIOR CITIZENS AND

DIFFERENTLY ABLED PERSONS

Reserve Bank of India vide circular no. RBI/2017-18/89 DBR.No.Leg.BC.96/09.07.005/2017-18 dated 09.11.2017 instructed banks to put in place explicit mechanisms for meeting the needs of senior citizens and differently abled persons with the following specific provisions.

a) Dedicated Counters/Preference to Senior Citizens, Differently abled persons

Banks are advised to provide a clearly identifiable dedicated counters or a counter which provides priority to senior citizens and people who are differently abled including visually impaired persons.

b) Ease of submitting Life Certificate

Pensioners can submit physical Life Certificate form at any branch of the pension paying bank. Banks shall ensure that when a Life Certificate is submitted in any branch, including a non-home branch, of the pension paying bank, the same is updated/ uploaded promptly in CBS by the receiving branch itself, to avoid any delay in credit of pension.

c) Cheque Book

Banks are advised to provide minimum 25 cheque leaves every year, if requested, in savings bank account, free of charge. Banks shall not insist on physical presence of any customer including senior citizens and differently abled persons for getting cheque books whenever a request is received, through a requisition slip.

d) Automatic conversion of status of accounts

Banks are advised that a fully KYC compliant account should automatically be converted into a ‘Senior Citizen Account’ based on the date of birth available in bank’s records.

e) Door Step Banking

RBI vide circular no. DBOD.No.BL.BC.42/C-168-83 dated May 24, 1983 advised the Banks not to

extend any banking facilities at the premises of their customers, without obtaining the required permission from Reserve Bank of India. However, in view of several requests received from various government departments for making available banking services including collection of cash at their premises and representations from banks, RBI advised banks to formulate a scheme for providing services at the premises of a customer within the framework of Section 23 of Banking Regulation Act, 1949 with the approval of their Boards and submitted to the Reserve Bank for approval. According to above mentioned framework, banks can provide the following services to Individual Customers/Natural persons:

(i)Pick up of cash, (ii) Pick up of instruments & (iii) Delivery of demand drafts

These facilities can be provided either through own employees or through Agents. Where banks engage the services of Agents for delivery of services, it should be ensured that the policy approved by the Board lays down the board principles for selection of Agents and payment of fee/commission etc.

Further to that viewing of the difficulties faced by senior citizens of more than 70 years of age and differently abled or infirm persons (having medically certified chronic illness or disability) including those who are visually impaired, banks were advised by RBI to make concerted effort to provide basic banking facilities, such as pick up of cash and instruments against receipt, delivery of cash against withdrawal from account, delivery of demand drafts, submission of Know Your Customer (KYC) documents and Life certificate at the premises/ residence of such customers.

All Banks have been advised to implement these instructions by December 31, 2017 in letter and spirit and give due publicity in their bank branches.

The matter is put up for information/discussion


AGENDA NO-5

RELIEF MEASURES IN DROUGHT AFFECTED AREAS

Government’s Notification

The State Government vide its Gazette notification (Attached as Annexure-1) dated 02.11.2017 has

declared 133 Tehsils of 18 districts drought affected area of a severe/moderate nature, having taken

into account the conditions as arising from rainfall deficiency, decline in the availability of ground and

surface water, poor crop conditions, and parameters related to remote sensing and socio- economic

parameters etc. The affected districts are:

Sr. Moderate Nature Sr. Severe Nature

1 Bhind 12 Ashok Nagar

2 Chhatarpur 13 Damoh

3 Panna 14 Gwalior

4 Satna 15 Sagar

5 Sidhi 16 Shivpuri

6 Shajapur 17 Tikamgarh

7 Sheopur 18 Vidisha

8 Morena

9 Datia

10 Shahdol

11 Umaria

In terms of RBI circular no. FIDD

No.FSD.BC.2/05.10.001/2016-17 dated

01.07.2016 on “Relief Measures by Banks in

Areas Affected by Natural Calamities”,

Directorate of Institutional Finance, Govt. of M.P.

vide its letter no. 3916 dated 28.11.2017

addressed to all Banks, LDMs and Collectors of

affected districts has advised to provide relief

measures to affected farmers.

Gist of RBI Guidelines for Relief Measures by

Banks in Area affected by Natural Calamity

• The banks’ contribution in providing relief

relates to rescheduling of existing loans and

sanctioning of fresh loans as per the emerging

requirements of the borrowers.

• In case the calamity has affected only a small

part of the State/few districts, the conveners

of the District Consultative Committees (DCC)

of the affected districts should convene a

meeting immediately. In these special DCC

meetings, the position in the affected areas

should be assessed to ensure speedy

formulation and implementation of suitable

relief measures by banks.

• The common thread to extend relief

measures is that the crop loss assessed

should be 33 per cent or more.

• Zonal Managers of commercial banks should

be vested with certain discretionary powers so

that they do not have to seek fresh approvals

from their central offices to the line of action

agreed to by the district/State level bankers’

committees (SLBCs)

Short Term Agriculture Loans

• All short-term loans, except those which are

overdue at the time of occurrence of natural

calamity, should be eligible for restructuring.

The principal amount of the short-term loan as

well as interest due for repayment in the year

of occurrence of natural calamity may be

converted into term loan.

• The repayment period of restructured loans

may vary depending on the severity of

calamity and its recurrence, the extent of loss

of economic assets and distress caused. A

maximum period of repayment of up to 2

years (including the moratorium period of 1

year) is to be allowed if the loss is between

33% and 50%, and if the crop loss is 50% or

more, the restructured period for repayment

may be extended to a maximum of 5 years

(including the moratorium period of one year).


Agriculture Loans - Long term (Investment)

Credit

• Natural Calamities where only crop for that

year is damaged and productive assets are

not damaged, the banks may reschedule the

payment of installment during the year of

natural calamity and extend the loan period

by one year. Under this arrangement the

installments defaulted wilfully in earlier years

will not be eligible for rescheduling. The banks

may also have to postpone payment of

interest by borrowers.

Other Loans

• A view needs to be taken by SLBC/DCC

depending on the severity of the calamity for

reschedulement of all other loans like allied

activities, rural artisan, traders, micro/small

units etc. If decision is taken to postpone

recovery of all the loans by the specified

period, banks will assess the requirement of

the individual borrowers depending on the

nature of his account, repayment capacity and

the need for the fresh loans. The primary

consideration will be viability of the venture

after the rehabilitation programme is

implemented.

Sanctioning of Fresh Loans

• Once the decisions on the rescheduling of loans

is taken by SLBC/DCC, pending such

conversion of short-term loans, banks shall

grant fresh crop loans to the affected farmers

which will be based on the scale of finance for

the particular crop and the cultivation area, as

per the extant guidelines.

• Banks shall also grant consumption loans up to

Rs. 10,000/- to existing borrowers without

any collateral. The limit may, however, be

enhanced beyond Rs. 10,000/- at the

discretion of the bank.

Utilization of Insurance Proceeds.

• The proceeds of insurance claim from National

Crop Insurance Programme should be adjusted

to Restructured Accounts. However, it should be

done in cases where banks have granted fresh

loans to the affected farmers.

Asset Classifications

• The restructured portion of the short-term as

well as long-term loans can be treated as

current dues and need not be classified as

NPA (non-performing asset). Nevertheless,

banks are required to make higher provisions

for such restructured standard advances.


ACTION BY VARIOUS STAKE HOLDERS

Sr. Action by the State Government

Status Sr. Action by Banks Status

A Declaration of Natural Calamity in the State

Done A Convening special DCC meetings in affected 18 districts

Spl. DCC/DCC meetings were held in Satna, Datia,Chhatarpur, Panna,Tikamgarh, Vidisha, Sidhi & Bhind districts till 12.12.2017. Other 10 districts have to convene such meeting.

B Notifying districts/Tehsil/Village hit/affected by the calamity

Done B Providing relief measures in terms of RBI circular no. FIDD No.FSD.BC.2/05.10.001/2016-17 dated 01.07.2016 on “Relief Measures by Banks in Areas Affected by Natural Calamities”

C Conducting a survey for assessment of the percentage of loss in standing crops in districts

* C

D Providing list of farmers with certificate of loss (Annewari Certificate) incurred in their standing crops, to banks for further action

Annewari certificates have been issued in

Tikamgarh, Umaria, Sidhi,

Morena, Gwalior & Sagar districts till 10.12.2017

D

This issue is put up for discussion.


AGENDA NO-6

MUKHYA MANTRI KRISHAK UDYAMI YOJANA AND AMENDMENTS IN MUKHYA

MANTRI SELF EMPLOYMENT SCHEMES

MSME department, Government of Madhya Pradesh vide letter no. F2-121/2017/A-73 dated

16.11.2017 has launched a new scheme namely “Mukhya Mantri Krishak Udyami Yojana” and amended

3 flagship self-employment generation schemes. A brief note is given below:

Mukhya Mantri Krishak Udyami Yojana (New

Scheme)

This scheme has been launched for farmer’s

son/daughter to establish agriculture

based/allied a new manufacturing and service

unit e.g. agro processing, food processing, milk

processing, cold storage, cattle feed, poultry

feed, fish feed, custom hiring Centre, tissue

culture, cattle feed, vegetable dehydration, Dal

mill, rice mill, oil mill, flour mill etc.

Project cost- Rs. 10 lakh to 2 crores

Eligibility

• Age- 18-40 years

• Educational Qualification- Minimum 10th

pass

• Income- No limit but the applicant's family

should not have already established any

business or industry and should not be an

income tax payer.

• Financial assistance

a) Margin money-

• 15% of the project capital

cost (Max 12 lakh) for

General category


cost (Max 18 lakh) for BPL

category

b) Interest subsidy-6% per year of the

project capital cost for women & 5%

per year for others for 7 years (max

5 lakh per year)

c) CGTMSE Guarantee fees- At the

prevailing rate for 7 years.

• Farmer’s son/daughter will be those

whose parents or self-have agriculture

land and they are not an income tax

payer.

Mukhya Mantri Yuva Udyami Yojana

Amendments-

(i) Project cost increased from Rs. 1

crore to Rs. 2 crore

(ii) Income- applicant's family should

not be an income tax payer.

(iii) Interest subsidy- Maximum cap

will be 5 lakh per year

(iv) Eligible units- New clause

“Eligible to get CGTMSE cover” is

added.

Project cost- Rs. 10 lakh to 2 crores

Eligible project- Industry (Manufacturing) and

Services Sector (eligible to get CGTMSE cover)

Applicable for new units only.

Eligibility


• Educational Qualification- Minimum 10th

pass




income tax payer.


a) Margin money-


cost (Max 12 lakh) for

General category


cost (Max 18 lakh) for BPL

category


project capital cost for women & 5%

per year for others for 7 years (max 5

lakh per year)



Security- No collaterals required. Loans will be

covered through credit guarantee schemes.


Mukhya Mantri Swarojgar Yojana

Amendments-

(i) Income- applicant's family should

not be an income tax payer.

(ii) Interest subsidy- Specifically

women is added, and it would be

6%

(iii) Eligible units- New clause

“Eligible to get CGTMSE cover” is

added.

Project cost- Rs. 50000 to 10 lakh

Eligible project- All Industry (Manufacturing),

Service and trading (eligible to get

CGTMSE/CGFMU cover) Applicable for new

units only.

Eligibility


• Educational Qualification- Minimum 5th pass




income tax payer.


a) Margin money-

• 15% of the project cost (Max. 1

lakh) for General category

• 30% of the project cost (Max 2

lakh) for

BPL/SC/ST/Women/Handicap

ped/Minority/OBC (except

creamy layer) category


project cost for women & 5% per year

for others for 7 years (max 25000 per

year)



Security- No collaterals required. Loans will be

covered through credit guarantee schemes.

Mukhya Mantri Arhik Kalyan Yojana

Amendment-

(i) Margin money subsidy-Minority & Vimukt

ghumakkad & Ardh ghumakkad added

Project cost- Maximum Rs. 50000

Eligible project- Street vendor, Kesh Shilpi,

Haath Thela, Cycle/Rikshaw driver & Potter

Applicable for new units only.

Eligibility


• Educational Qualification- No any

• Income- Member of National Food

Mission/PDS card holder


d) Margin money-

• 15% of the project cost for

General category

• 50% of the project cost for

BPL/SC/ST/Women/Handicapp

ed/Minority/OBC (except

creamy layer) /Vimukt

Ghumakkad & Ardh Dhumakkad

Tribes (maximum Rs. 15000)

Security- No collaterals required.



GROWTH PATTERN IN FLAGSHIP EMPLOYEMENT GENERATION PROGRAMMES OF THE STATE

GOVT. DURING LAST THREE YEARS & CUURENT FISCAL

• In Madhya Pradesh, 30% of population is in the age group of 15-30 years; huge potential for employment growth.

• Madhya Pradesh Government has been supporting entrepreneurs/ Self-Employment by providing an enabling environment for job creation and entrepreneurship.

• In the year 2014, 13 self-employment schemes of Madhya Pradesh Government were merged into following 3 major flagship schemes.

• The below mentioned figures show growth and coverage of these schemes, which resulted in achievement of 100% against target.

Number of beneficiaries

*Up to 31st October 2017

Mukhyamantri Yuva Udyami Yojana Year Target Disbursement Achievement %

2014-15 1000 995 99.50

2015-16 1500 1510 100.67

2016-17 2000 2030 101.50

2017-18* 2000 544 27.20

Mukhyamantri Swarojgar Yojana Year Target Disbursement Achievement %

2014-15 31600 32611 103.20

2015-16 54000 54318 100.59

2016-17 68000 68386 100.57

2017-18* 85400 29021 33.98

Mukhyamantri Arthik Kalyan Yojana Year Target Disbursement Achievement %

2014-15 20700 17953 86.73

2015-16 16000 17848 111.55

2016-17 30000 31079 103.60

2017-18* 43600 13249 30.39

Total (all 3 Self Employment Schemes) Year Target Disbursement Achievement %

2014-15 53300 51559 96.73

2015-16 71500 73676 103.04

2016-17 100000 101495 101.50

2017-18* 131000 42814 32.68


AGENDA NO-7

PROGRESS UNDER OTHER GOVERNMENT SPONSORED SCHEMES

Amount in crore

Year Financial Target (Margin Money)

Beneficiary

Number Margin Money

disbursed Achievement %

2014-15 81.82 2847 95.63 116.87%

2015-16 81.27 1979 81.16 99.86%

2016-17 99.72 1941 83.42 83.65%

Progress report FY 2017-18 M.M.-Margin Money amount in crores As on 31.10.2017

AGENCY

TARGET FORWARDED TO BANK SANCTIONED BY

BANK

DISBURSEMENT BY BANK

(ONLINE+OFFLINE) Achi%

NO. M.M. NO. M.M. NO. M.M. NO. M.M. M.M.

DIC 3825 75.87 3528 172.98 816 35.30 409 17.41 46.53

KVIB 2868 56.90 1154 46.37 324 14.02 173 6.71 24.64

KVIC 2868 56.90 750 31.69 286 12.31 111 5.49 21.63

Total 9561 189.68 5432 251.04 1426 61.63 693 29.61 32.49


Achievement up to 30.09.2017 Amt. in crore

Particulars FY 2017-18

Number Amt.

Target 65122 734.37

Cases submitted 25567 367.39

Sanctioned 15320 214.9

Disbursed 12315 163.86

Achievement% (Disbursed) 19 22

Sanctioned % over submission of cases

60 58

As on 31.10.2017 Amount in crores BANK TYPE TARGET

FY 17-18 AMT.

SHISHU KISHORE TARUN TOTAL ACHI % No. Amt. No. Amt. No. Amt. No. Amt.

PUBLIC SECTOR BANKS

5000 39127 83 48637 1059 14958 1066 102722 2207 44.15

PVT. SECTOR BANKS

752 264256 724 9863 184 1516 93 275635 1002 133.19

RRBS 675 11084 40 6133 100 457 28 17674 169 25.01

BANK'S SUB-TOTAL

6427 314467 848 64633 1343 16931 1187 396031 3378 52.56

MFIS 3283 900284 2181 1818 12 4 0 902106 2194 66.82

NBFCS 40652 93 2375 47 30 2 43057 142

SMALL FINANCE BANKS

40189 100 4264 117 1134 75 45587 292

TOTAL 9710 1295592 3222 73090 1518 18099 1265 1386781 6006 61.85

Bank wise list is given in Table no.29


Disbursed amt. in crores

As on 31.03.2017 As on 31.10.2017

Category Number Amt. Number Amt.

Female 1392 309.89 1844 423.15

General 1089 245.83 1480 346.25

Minority 71 17.64 79 19.26

OBC 161 32.56 195 39.31

SC 54 10.07 71 12.55

ST 17 3.79 19 5.78

Male 323 60.79 375 69.13

SC 231 43.74 264 48.85

ST 92 17.05 111 20.28

Total 1715 370.68 2219 492.29

Bank wise performance is shown in Table no.30 Performance of Top 10 Districts (Number) in M.P. under Standup India Scheme Amt. in crore

As on 31.10.2017

Sr. Name of the District Number Amount

1 Indore 384 88.92

2 Bhopal 281 64.16

3 Jabalpur 175 41.13

4 Gwalior 155 39.03

5 Ujjain 118 24.47

6 Rewa 59 14.98

7 Narsinghpur 54 10.09

8 Hoshangabad 53 8.28

9 Chhindwara 51 12.11

10 Dhar 51 9.11

Bank wise performance is shown in Table no.31


AMENDMENT

The Cabinet has recently approved the increase in the carpet area of houses eligible for interest subsidy

under the credit linked subsidy scheme for the middle income group under Pradhan Mantri Awas Yojana

(PMAY).

a) After the latest amendment is incorporated, carpet area has been increased in the middle income

group (MIG-I) category of credit linked subsidy scheme (CLSS) from the existing 90 square metre

to up to 120 square meter.

b) In respect of the middle income group (MIG) II category of credit linked subsidy scheme, Carpet

area has been raised from the existing 110 square meter to up to 150 square meter.

c) The CLSS for MIG covers two income segments in the MIG, including Rs. 6 lakh to Rs. 12 lakh

(MIG-I) and Rs. 12 lakh to Rs. 18 lakh (MIG-II) per annum.

d) In the middle income group 1 category, an interest subsidy of 4% is allowed for loan amounts

up to Rs. 9 lakh while in the middle income group 2 category an interest subsidy of 3% is allowed

for loan amount of Rs. 12 lakh. Housing loans above 9 lakh and 12 lakh will be at non-subsidized

rates.

e) The interest subsidy will be calculated at 9% NPV over maximum loan tenure of 20 years or the

actual tenure, whichever is lesser.

f) The above changes are effective from 01.01.2017.

g) The CLSS for MIG is currently effective up to 31.03.2019.

Progress under PMAY-Urban

Particulars Cumulative up to

31.03.2017 Cumulative up to

30.11.2017

FY 2017-18

No. of sanctioned cases (Banks & HFCs)

1874 5242 3368

Subsidy released Rs. in crores

32 98.05 66.05

ISSUES

• With a view to provide easy Home loans to EWS beneficiaries, Urban Administration and Development (UAD) has issued guidelines and model tripartite agreement during last SLBC meeting. Under Affordable Housing in Partnership (AHP) Vertical of Pradhan Mantri Awas Yojana 1,30,682 EWS houses have been sanctioned. Loan tie-ups for EWS beneficiaries is to be done by banks and FIs. – Review of progress under this vertical and future course of action shall be discussed.

• Government of Madhya Pradesh is committed to provide Pucca House to all the Houseless Urban Poors. Till now state has got sanction of more than 4 lakh houses under Pradhan Mantri Awas Yojana(Urban). For faster implementation of the scheme and time-bound completion of EWS houses, Urban Administration and Development (UAD) is planning to raise Rs. 1500 Crores Funding from Bank/FIs – UAD will be floating tender in this regard and shall expect participation from Banks/FIs.

• Any other issue from Central Nodal Agency, Bank/HFI or SLNA side with the permission of Chairperson.


ISSUES RELATED TO GOVT. SPONSORES SCHEMES

Improper distribution of loan applications

• It has been reported that uniform distribution of applications for loan under different government

sponsored schemes is not happening at the field level, which results in a situation in which some

of the bank branches find themselves saddled with quite a large number of applications whereas

many other branches receive relatively less number of applications.

• Ideally, uniform distribution of applications amongst bank branches is desirable in the interest

of expeditors processing and completion of associated formalities for consideration of loan

applications on merit by branches. This will also help in achieving of the targets allotted to

braches within the time limits.

• Implementing agencies of various government sponsored schemes may be advised to ensure

proper distribution of applications amongst bank branches for effective implementation of the

schemes.

• In order to reducing the rejection rate, submitted proposal should not be more than 125%

of the targets (as decided in the last SLBC meeting).

DAY-NULM It is informed by Municipal Corporation, Bhopal that proposals of DAY-NULM under Mukhya Mantri Arthik Kalyan Yojana/Swarojgar Yojana are pending with the following banks.

Period 01.04.2017 to 08.12.2017 Amount in crores

Sr. No

Bank

No. of Application Received

No. of Application Returned/Rejected

No. of Application for

sanctioned

No. of Application Disbursed

No Amt. No Amt. No Amt. No Amt.

1 Axis Bank 185 1.83 0 0.00 2 0.02 0 0.00

2 Bank of Baroda 423 4.95 71 0.84 14 0.13 7 0.03

3 Dena Bank 108 1.21 37 0.39 16 0.20 11 0.15

4 Federal Bank 13 0.19 0 0.00 0 0.00 0 0.00

5 HDFC Bank Ltd. 106 1.02 0 0.00 0 0.00 0 0.00

6 IDBI Bank Ltd. 43 0.55 9 0.12 0 0.00 0 0.00

7 Indian Bank 73 1.10 18 0.23 10 0.12 0 0.00

8 Indian Overseas Bank 200 2.35 98 1.17 4 0.04 0 0.00

9 Karnataka Bank 18 0.16 0 0.00 0 0.00 0 0.00

10 Oriental Bank of Comm. 246 2.81 0 0.00 7 0.07 0 0.00

11 Punjab & Sindh Bank 69 0.85 51 0.61 7 0.09 0 0.00

12 State Bank of India 1811 20.85 392 4.21 126 0.86 6 0.04

13 UCO Bank 217 2.35 31 0.26 6 0.12 6 0.12

14 United bank of India 44 0.50 1 0.01 0 0.00 0 0.00

15 Vijaya Bank 90 1.22 2 0.01 4 0.04 0 0.00

Grand Total 3646 41.93 710 7.86 196 1.68 30 0.33

The matter is put up for discussion.


AGENDA NO-8

OPENING OF “BANKING OUTLETS” IN VILLAGES HAVING POPULATION 5000 AND

ABOVE

• During last SLBC meeting held on 18.09.2017, the house approved the allotment of 32

remaining unbanked villages to the banks based on respective Sub Service Areas (SSAs) of the

centres. Concerned banks were advised to open “Banking Outlets “latest by 31st December

2017. It was mentioned that RRBs are not granted permission by the RBI. After discussion, it was

decided that the sponsor banks of the Central Madhya Pradesh Gramin Bank and Madhyanchal

Gramin Bank should shoulder the responsibility of its own RRB and if RRBs are unable to open

banking outlet then sponsor bank should open the banking outlets at those places.

• During the quarter, 28 more centres have been covered though banking outlets manned by

business correspondents. Now, out of 47 identified centres, 43 centres have been covered by

banks till 15.12.2017. 15 Centres have been covered through brick and mortar branches and

28 centres have been covered through Baking Outlets manned by business correspondents.

• 4 centres still remain to be covered. Sub service areas of these village in Bhind districts fall under

Central Madhya Pradesh Gramin Bank (CMPGB). Since, neither CMPGB nor it’s sponsored bank

i.e. Central Bank of India are not in a position to open their banking outlets due to some genuine

reasons, the house is requested to deliberate on the issue and allot these centres to some other

banks, which have presence in Bhind district.

The matter is placed for discussion.


AGENDA NO-9

CREDIT DEPOSIT RATIO

SR. IMPORTANT INDICATORS SEPTEMBER-16 SEPTEMBER-17

1 (i) Aggregate Deposits (crore) 304013 348872

(ii)Bank Credit (crore) 220042 257744

2 Population wise share in total deposits (Percent)

(i) Rural 14.21 14.41

(ii) Semi-urban 57.22 60.83

(iii) Urban 28.58 24.76

2A Population wise share in total advances (Percent)

(i) Rural 18.93 18.61

(ii) Semi-urban 53.40 56.56

(iii) Urban 27.67 24.83

3 All SCB-Annual Growth Rates (Percent)

(i) Aggregate Deposits -3.73 15.29

(ii) Bank Credit 11.68 13.81

3A Bank Group-Annual Growth Rates (Percent)

Public Sector Banks

(i) Aggregate Deposits -5.30 14.96


Private Banks

(i) Aggregate Deposits 14.09 18.45


Regional Rural Banks

(i) Aggregate Deposits 24.22 6.70


4 Credit Deposit Ratio (Percent)

Commercial Banks 71.12 70.21

Regional Rural Banks 61.27 59.31

Cooperative Banks 101.72 141.19

Madhya Pradesh 72.38 73.88*

All India (SCBs) 72.80 73.30

• On a year-on-year (y-o-y) basis, aggregate deposits grew at the rate of 14.75% in all

population groups (except in urban areas); on the other hand, however, bank credit decelerated

across all population groups except in semi urban areas.

• Semi-urban bank branches continued to hold the largest share of aggregate deposits (60.83 %)

and total bank credit (56.56%).

• Annual growth rate in aggregate deposits of scheduled commercial banks (PSBs & Pvt. Banks)

was 15.29%, whereas it was 13.81% for credit.

• The credit-deposit (C-D) ratio of all SCBs in the state came down to 70.21% by Sep- 2017 from

71.12% a year ago.

• However, CD ratio of the state increased from 72.38% a year ago to 73.88% during Sep-

2017.

*The above CD ratio excludes credit portfolio, which have been financed from outside the state

but credit facilities are being availed here. Hence, the actual CD ratio will be on a higher side.

Bank wise deposits, advances & CD Ratio is shown in Table no. 3(i)


DISTRICTS WITH CD RATIO BELOW 40% AS ON 30.09.2017

Amount in crores

SR. DISTRICTS

LEAD BANK

DEPOSITS ADVANCES CD RATIO%

30.06.17 30.09.17 30.06.17 30.09.17 30.06.17 30.09.17

1 UMARIA SBI 1736 1824 425 447 24.47 24.50

2 DINDORI CBOI 1020 978 293 281 28.72 28.68

3 SHAHDOL CBOI 3453 3528 1107 1122 32.05 31.80

4 MANDLA CBOI 2521 2567 907 911 35.99 35.50

5 TIKAMGARH SBI 3128 3126 1143 1210 36.53 38.71

District wise deposits, advances & CD Ratio as on 30.09.2017 is shown in Table no. 3(ii)

• Where Dindori, Shahdol, Mandla & Umaria districts always fall under the category of low CD

ratio districts, Tikamgarh district ever go out of this category and then come back.

• A special DCC meeting was conducted in Umaria district on 27.04.2017 to draw monitor able

action points to increase the credit deposit ratio.

Action taken report on Minutes of Special DLCC meeting held on 27.04.2017 at UMARIA-

Status as on 30.11.2017

Sr. Action Point Department Action Taken

1 Agriculture loan melas should be arranged with the help of district adminnistration and Banks to provide information regarding loans on low intrest rate, intrest subvention on timely repayment and financial institutions.

Banks and Dy. Director

Agriculture

The Banks and District Administration have arranged following loan camps to provide informations to farmers :- (1). Kisan Vigyan Mela 24.05.17. (2). Hariyali Mahotsav on 10.07.17 (3). Krishi Melas from 15th Sept. To 30th sept 17 in three Blocks. (4) Krishi Mela on 03.11.2017. (5) Swarojgar mela on 02.12.2017. Large number of people visited the camps and sight.

2 For recovery of Banks loan a recovery team consisting of Bank’s Officials and Tehsildar should be formed. They will visit5 large borrowers of village with the helpo of Police. It will create awareness among farmers to repay the Bank loans.

Banks and District

administration

District administration has informed that Bank Officials are not coming forward for recovery with the support of them. District administration has assured for their whole hearted support.

3 Employement and income of farmers may be increased by encouraging Dairy activity.Collector has requested that each Banks should finance minimum 10 dairy loans to large farmers to increase CD ratio of distrrict.Bankers has given consent to provide loans in. viable cases


Veternary

29 dairy cases have been sanctioned out of 229 applications forwarded to Banks. A few banks are in the process of execution of Tripartite Agreement with M.P Dugdha Sangha. A few banks are insisting for a collateal security due to their Corporate policies. However, they have taken up the issue with their Controlling Officers for guidance.

4 Scale of Finance for crop loan should be revised and agricultre loan to be increased by sanctioning new crop loans and increasing existing crop loans.


Agriculture

The scale of finance has been fixed based on the recommendations of a committee comprising of District Collector DCCB & Agri Department. The same is being reviewed every year. The banks will follow the scale of finance fixed by the committee.

5 Mudra loans should be sanctioned by Banks in SME segment, specially to youths have ITI, Polytechnic and RSETI training.

Banks and DIC We have provided the list of Trainees of RSETI to Govt. Departments to prepare loans cases under various Govt. Sponsored Schemes. The forms have been made available at RSETI and duly filled in forms are being forwarded to respective


departments for onward submission to banks.

6 Possibility of finance for Bamboo cultivation should be searched on the line of Amlai Paper Mill financed.


Agriculture

Farmers are being encouraged for Bamboo plantation with the help of Horticulture and Agriculture Department.

7 Stand up India scheme should be popularised to increase advance of district.

DIC Efforts are being made by all Banks to finance all viable cases.

8 Collector has directed to Dy. Director Agriculture to provide list of farmers who has not availed loan from Banks with the help of Chief Executive Officer Janpad Panchayat. He should also informed that crops that can be cultivated.


Agriculture

Banks have arranged 5 Kisan Mela from May,17 to december,17 to create awareness among the farmers about the huge of loans available for Agriculture purpose. Effortsa are being made by Banks, but due to huge level of NPA, bankers are not enthusiative about the same.

9 Awareness to be created among Farmers for cultivation of Cash crops by arranging camps jointly by Banks and Agriculture department.


Agriculture

Farmers have been provided information regarding advantage of cash crop by arranging 5 camps from May,17 to December,17 by Banks.

10 Collection Centers for forest produce to be established to increase income of Farmers.

Dy. Director Agriculture

Effort are contnued with the help of Forest department.

11 Loan to Farm Mechenisation, Power Tillers, Tractors, Pump set,Solar Pump to be provided to increase advance.Financing of Power Tillers should be given importance due low land holding.


Agriculture

The survey has been completed by the Agriculture Department. Banks will provide finance to all such Agriculturist subject to eligibility.

12 Loans should be provided to Self Help groups of ladies, because their repayment of loan is good.

Banks and Jila Panchayat/ Janapad

Panchayat

The Banks and SRLM Department are working in close liasioning and have been pursuading for opening of accounts of SHGs.

13 Banks should give preference to construction of Warehoue,because District has shortage of godown for warehousing of crops.


Agriculture

Agriculture department is encouranging big farmers for construction of warehouse.

14 Flyash is available in the district, hence Industries related to flyash should be encouraged.

Banks and DIC Efforts are being made by DIC to mobilise enterpreneurs for such industry .

15 Establishment of Agro based industries such as Rice Mill, Dal Mill, Edible Oil Mill etc Should be given preference.

Banks and DIC DIC is conducting market survey for entreprenuer for these activities.

16 Minerals exploration work is undertaken mainly in Umaria district, hence loan for related work as Transport Operators, Cargo Operators and exploration’s Machines may be provided preferably.

Banks and DIC Presently large entities from outside from Umaria district are engaged in these activities and do not transact with Banks of Umaria. These entities are availing Banking facilities from their Corporate Offices situated outside. However, Banks are trying

for their business.

17 Education loans to Students of Umaria district to be given preferably. Committee has opinion that Banks should have positive

Banks Banks are sanctioning education loans to students on priority.

18 Banks should complete 100% targets of different GSS schemes as MMYUY, MMUSY, MMAKYetc.

Bank and DIC Position of GSS as on 30.11.2017 is as under:- Scheme Target Appl sent sanction MMYU 11 13 08 MMYSY 771 1629 513 MMAKY 410 616 191 PMEGP 61 25 03 Banks will ensure achievement of targets under various Govt. Sponsored Schemes.

19 Banks should preferably sanction loans for House, Car, and Personal Loan

Banks Banks are sanctioning loans to Personal Banking segment on regular basis.

This issue is presented for discussion.


AGENDA NO-10

DIGITAL TRANSACTIONS STATUS Chart showing volume of digital transactions of country

(Number in crores)

Mode of Digital Txn. Sep-15 Sep-16 Sep-17 Y-o-Y growth %

Sep-16 Y-o-Y growth

% Sep-17

RTGS 0.78 0.84 0.96 7.69 14.29

NEFT 9.85 12.01 15.77 21.93 31.31

Mobile Banking 2.71 7.26 8.63 167.90 18.87

Source-www.rbi.org.in

• The pattern of above mode of digital transactions show that there is sharp increase in mobile banking transactions between Sep-16 to Sep-17. Whereas, growth is slowed down between Sep-16 to Sep-17.

• RTGS and NEFT transactions have shown a growth at the rate of 7.69% and 21.93 % respectively during the period Sep-15 to Sep-16. Whereas, it was 14.29% and 31.31% respectively during Sep-16 to Sep-17 and the behavior of electronic payments suggests that the surge in digital activity has been sustained now after demonetization.

(Number in crores)

DATE CTS IMPS NACH UPI USSD* Debit and

Credit Cards at POS

PPI

16-Sep 8.71 3.62 15.25 0.03 0.07 20.55 5.9

17-Sep 9.22 8.29 17.6 3.08 2.03 24.03 8.75

Y-o-Y growth % 6 129 15 10167 2800 17 48

Source-npci.org.in

• Above data reveal that IMPS, UPI and Mobile Banking are gaining popularity amongst other modes of digital payments and their volumes increased by 129%, 10167% and 18.87% respectively year on year during September 2017.

Digital transactions status Madhya Pradesh as on 30.09.2017 Number in lakh

Sr. Mode of Digital txn.

No. of txn. Between

01.04.2017 to 30.06.2017

No. of txn. Between

01.07.2017 to 30.09.2017

Total no. of txn. During half year of current

fiscal

1 UPI 22.55 89.40 111.95

2 USSD 0.02 0.08 0.10

3 Aadhaar Pay 0.78 4.14 4.92

4 IMPS 39.74 140.32 180.06

5 Debit Cards@ATMs 2277.21 1472.04 3749.25

6 Bharat QR Code 0.13 0.10 0.23

7 Debit/Credit cards @POS 178.39 220.35 398.74

8 Mobile Banking 56.51 88.55 145.06

9 Internet Banking 590.97 455.07 1046.04

Total 3166.30 2470.05 5636.35

Above data pertain to 20 major banks, which shows that 56.36 crore (No.) digital transactions have been made against the annual target of 129 crore set for the current year and we may project that such target will be achieved.


AGENDA NO-11

FINANCIAL INCLUSION Status as on 30.11.2017 Number & amount in lac

Particulars Status Madhya Pradesh

[A] Operative CASA Accounts 31.03.2017 30.06.2017 30.11.2017 Progress over

Mar-17

No. of operative CASA bank a/c 520.53 529.91 588.53 68.00

No. of a/c seeded with Aadhaar 357.8 366.85 463.25 105.45

Aadhaar seeding % 68.74 69.23 78.71 9.98

No. of a/c seeded with mobile no. 309.31 316.79 378.67 69.36

Mobile seeding % 59.42 59.78 64.34 4.92

[B] PMJDY Accounts 0.00

No. of PMJDY Accounts 248.58 258.03 266.19 17.61

Balance held in the accounts 283274 307189 305838 22564

Average Bal. in the accounts (Rupees actual) 1140 1190 1149 9.00

No. of Zero Balance a/cs 67.79 68.13 57.93 -9.86

% of Zero Balance accounts 27.27 26.40 21.76 -5.51

No. of Aadhaar seeding 160.26 184.42 203.1 42.84

Aadhaar seeding % 64.47 71.47 76.30 11.83

RuPay card issued 179.65 186.4 190.54 10.89

RuPay card activation % 34.46 42.12 43.44 8.98

Bank wise data is given in Table No. 25

▪ As on 30th November 2017, there were 5.89 crores operative savings accounts including PMJDY accounts. Total numbers of PMJDY accounts were 2.66 crores in the State.

▪ Out of total operative SB accounts, percentage of Aadhaar and mobile seeding was 78.71% and 64.34% respectively.

▪ In PMJDY accounts, percentage of Aadhaar seeding was 76.30%.

▪ 21.76% PMJDY accounts are still inoperative and there were no balance in these accounts as of 30th Nov- 2017.

▪ Total balance in PMJDY accounts was Rs. 3058 crores, which comes to Rs. 1149 per account on an average.

▪ During current fiscal, 17.61 lakh new PMJDY accounts were opened till 30.11.2017. Outstanding balance in PMJDY accounts also increased by Rs. 225 crores during the period Mar to Nov-2017.

Bank wise Aadhaar authentication status as on 30.11.2017 Number in lakh

Sr. Bank Name Number of operative

CASA

Number of Aadhaar

seeded CASA

% of CASA

Aadhaar seeding

Number of Authenticated

CASA

% CASA authentication

1 Allahabad Bank 17.74 15.12 85.23 10.23 57.67

2 Andhra Bank 1.39 0.90 64.75 0.87 62.59

3 Bank of Baroda 20.44 15.33 75.00 10.36 50.68

4 Bank of India 65.71 53.03 80.70 32.27 49.11

5 Bank of Maharashtra 14.12 10.29 72.88 5.06 35.84

6 Canara Bank 8.88 6.99 78.72 4.25 47.86

7 Central Bank of India 41.28 36.02 87.26 25.23 61.12

8 Corporation Bank 4.00 3.36 84.00 3.14 78.50

9 Dena Bank 3.54 3.24 91.53 2.06 58.19

10 IDBI Bank Ltd. 4.66 3.20 68.67 2.30 49.36

11 Indian Bank 1.79 1.35 75.42 0.47 26.26

12 Indian Overseas Bank 1.78 1.31 73.60 0.71 39.89


13 Oriental Bank of Commerce 4.32 2.80 64.81 2.53 58.56

14 Punjab & Sind Bank 0.93 0.78 83.87 0.60 64.52

15 Punjab National Bank 29.07 25.07 86.24 17.39 59.82

16 State Bank of India 216.00 170.74 79.05 88.30 40.88

17 Syndicate Bank 3.92 3.16 80.61 1.59 40.56

18 UCO Bank 11.39 8.61 75.59 2.90 25.46

19 Union Bank of India 26.11 19.78 75.76 9.53 36.50

20 United Bank of India 0.51 0.34 66.67 0.20 39.22

21 Vijaya Bank 2.40 1.75 72.92 1.66 69.17

PSBs Sub-total 479.98 383.17 79.83 221.65 46.18

22 Airtel Payment Bank 14.28 14.28 100.00 14.28 100.00

23 Axis Bank Ltd 5.96 3.85 64.60 3.57 59.90

24 Bandhan Bank 2.45 0.00 0.00 0.00 0.00

25 Catholic Syrian Bank Ltd 0.02 0.02 100.00 0.00 0.00

26 City Union Bank Ltd 0.04 0.02 50.00 0.00 0.00

27 DCB Bank Limited 0.37 0.21 56.76 0.01 2.70

28 Dhanalakshmi Bank Ltd 0.01 0.00 0.00 0.00 0.00

29 Federal Bank Ltd 0.28 0.22 78.57 0.17 60.71

30 HDFC Bank Ltd 7.02 4.59 65.38 4.59 65.38

31 ICICI Bank Ltd 7.24 4.59 63.40 4.05 55.94

32 IDFC Bank Ltd. 1.73 1.55 89.60 1.49 86.13

33 IndusInd Bank Ltd 1.03 0.89 86.41 0.89 86.41

34 Jammu & Kashmir Bank Ltd 0.03 0.01 33.33 0.00 0.00

35 Karnataka Bank Ltd 0.36 0.23 63.89 0.09 25.00

36 Karur Vysya Bank 0.12 0.07 58.33 0.03 25.00

37 Kotak Mahindra Bank Ltd 0.92 0.72 78.26 0.64 69.57

38 Lakshmi Vilas Bank Ltd 0.05 0.03 60.00 0.00 0.00

39 RBL Bank Ltd 1.61 1.28 79.50 0.95 59.01

40 South Indian Bank Ltd 0.07 0.05 71.43 0.03 42.86

41 Tamilnadu Mercantile Bank Ltd

0.04 0.04 100.00 0.00 0.00

42 Yes Bank Ltd 0.53 0.31 58.49 0.18 33.96

Pvt. Banks Sub-total 44.16 32.96 74.64 30.97 70.13

43 NJGB 20.30 15.62 76.95 9.66 47.59

44 CMPGB 22.18 18.05 81.38 11.69 52.71

45 MGB 21.93 13.47 61.42 0.00 0.00

RRBs Sub-total 64.41 47.14 73.19 21.35 33.15

588.55 463.27 78.71 273.97 46.55

▪ As of 18.08.2017 Aadhaar authentication percent on CASA accounts were only 17.9%, now it is

46.55%.

▪ Now the deadline to link Aadhaar with bank accounts has been expended to March 31, 2018.

Aadhaar seeding process to be followed for obtaining consent from the customer

One of the important aspect of Aadhaar Seeding is obtaining explicit consent from the customer for

receiving subsidy and other credits as per mapper data. Currently, consent is obtained from the customers

in two ways.

a) Paper based consent & b) Electronic form

NPCI vide circular number NPCI/2017-18/NACH/Circular No.251 dated 26.10.2017 informed that as

per the mapper design, if more than one bank uploads the Aadhaar number in NPCI mapper, the mapper

will hold the last record updated. NPCI has advised that Aadhaar seeding is carried out only after

obtaining the declaration from the customers as specified in the circular referred above.


All Banks are requested to comply with the above instructions of NPCI.

OPENING OF AADHAAR ENROLLMENT CENTRES IN M.P.-STATUS AS ON 30.11.2017

Sr. Banks

No of Centres to be

opened

Opened Remaining Present status

1 Allahabad Bank 21 0 21 Verifier cum supervisor training is completed.

2 Axis Bank 13 13 0 All are opened.

3 Bank of Baroda 44 0 44 Verifier cum supervisor training is completed.

4 Bank of India 43 11 32 Verifier cum supervisor training is completed.

5 Bank of Maharashtra 18 0 18 Training of Master Trainers is yet to complete

6 Canara Bank 22 0 22 Verifier cum supervisor training is completed.

7 Central Bank of India 47 0 47 Verifier cum supervisor training is completed.

8 CMPGB 46 0 46 Verifier cum supervisor training is completed.

9 Corporation Bank 6 0 6 Verifier cum supervisor training is completed.

10 Dena Bank 9 9 0 All are opened.

11 HDFC 13 0 13 *

12 ICICI 24 5 19 5

13 IDBI Bank 9 0 9 *

14 Indian Bank 3 0 3 *

15 Narmada Jhabua Gramin Bank

41 0 41 Verifier cum supervisor training is completed. The bank has applied for enrollment agency ID to UIDAI.

16 Oriental Bank of Commerce 6 0 6 Will complete in 15 Days

17 Punjab & Sindh Bank 4 0 4 Yet to provide training to staff

18 Punjab National Bank 30 0 30 *

19 Ratnakar Bank Ltd 2 0 2 *

20 State Bank of India 114 0 114 Verifier cum supervisor training is completed. Engagement of outside agency is in process.

21 Syndicate Bank 11 0 11 *

22 UCO Bank 50 0 50 *

23 Union Bank of India 28 0 28 *

24 Vijaya Bank 7 0 7 Verifier cum supervisor training is completed.

25 Yes Bank 3 0 3 *

Grand Total 614 38 576

*Bank to respond.

The matter is put up for discussion.


PERFORMANCE OF RURAL SELF EMPLOYMENT TRANING INSTITUTES (RSETIs)

▪ The 50 Rural Self Employment Training Institutes (RSETIs) and 1 RUDSETI in the State, an initiative of Ministry of Rural Development (MoRD), are imparting training and skill up-gradation to rural youth encourage towards entrepreneurship development. Recently, the scheme has been aligned with the common norms for Skill Development schemes notified by Ministry of Skill Development and Entrepreneurship, GoI.

▪ In the state of Madhya Pradesh minimum settlement rate is 64.76%, which needs to be achieved minimum 70% for trained candidates within one year of training. ‘Settlement’ in RSETI means either self-employment or wage employment in the ratio of 90:10 respectively.

▪ Some of the ways suggested by the Joint Secretary (Skills), Ministry of Rural Development, GOI vide letter addressed to the Additional Chief Secretary, Panchayat & Rural Development, GoMP are as given below: a) Sensitizing RSETIs in the state on the need to organize demand driven training courses with high

prospects of settlement through regular interaction with the industry/businesses. b) Monitoring of bank linkage of trained candidates and evaluation with RSETI Directors with

Banks and specially in SLBCs. c) Direct involvement of local state officials in mobilization of candidates to ensure right and

deserving candidates are given training. d) Regular tackling of the candidates for one year after completion of training with focused hand

holding support to facilitate credit linkages/placements.

Performance highlights of RSETIs in the State as on 30.11.2017 FY 2017-18

▪ There was a target of 1231 number of programmes for financial year 2017-18, out of which 670 training programs were conducted till 30th November 2017.

▪ Out of the target of total 35570 trainees for FY 2017-18, 17528 candidates were trained up to 30.11.2017.

▪ Out of total trained candidates, 2044 were from SC/ST category, 2176 from OBC, 213 from minority and 9611 were from other categories.

▪ Since inception, 6247 programmes have been conducted wherein, 172371 candidates were trained.

Opening of RSETI is Agar Malwa District

It has been brought to the notice that no full-fledged RSETI is functioning in Agar Malwa district, which is

the lead district of Bank of India. The Lead Bank of this district is supposed to establish a RSETI for

imparting training and skill up-gradation to rural youth.



STATUS OF PENDING CLAIMS WITH DRDA/NRLM FOR SETTLEMENT As many as, claims of Rs. 3.42 crores are pending for reimbursement of training expenses of BPL candidates incurred by RSETIs with SRLM of the State for settlement. Even some of the claims for settlement are pending since last 7 years. Details are as under:

Amount in Rs. lakh

Sl. No.

Name of the RSETI

10-11 11-12 12-13 13-14 14-15 15-16 16-17

17-18. UP TO

30.11.2017 Total

1 AshokNagar 2.75 1.74 0.00 11.74 9.57 1.21 2.38 29.39

2 Nowgaon 0 0.00 0.00 0.00 1.14 11.67 7.44 20.25

3 Damoh 0 17.93 6.99 15.19 1.10 10.96 9.85 62.02

4 Guna 0 0.00 0.00 4.49 4.30 9.99 2.52 21.30

5 Harda 0 0.00 0.00 0.00 0.00 4.90 3.94 8.84

6 Katni 0 0.00 0.00 0.00 0.00 15.57 10.06 25.63

7 Neemuch 0 0.00 0.00 0.00 0.00 8.63 4.95 13.58

8 Panna 0 0.00 0.00 3.05 10.91 13.52 4.84 32.32

9 Sheopur 0 0.00 0.00 0.00 0.00 2.26 9.28 11.54

10 Shivpuri 0 0.00 0.00 0.00 0.00 6.02 3.10 9.12

11 Tikamgarh 0 0.00 0.00 0.00 0.00 20.63 13.62 34.25

12 Umaria 0 0.00 0.00 0.00 5.28 12.37 8.06 25.71

13 Vidisha 0.51 5.47 6.74 6.06 5.15 1.60 15.58 6.72 47.83

Sub Total 0.51 8.22 26.41 13.05 39.62 33.9 133.30 86.76 341.78

The State government is requested to settle the claim at the earliest.

This agenda is placed for discussion.

SOCIAL SECURITY SCHEMES-STATUS (Numbers in actuals) as on 30.11.2017

Bank Type PMJJBY PMSBY

30.06.17 30.11.17 Variation 30.06.17 30.11.17 Variation

PSBs 1210868 1263168 52300 4935225 5107202 171977

Private Banks 47695 49235 1540 166332 194081 27749

RRBs 183337 175185 -8152 1182971 1180712 -2259

Co-operative 101164 101172 8 590329 590331 2

Total 1543064 1588760 45696 6874857 7072326 197469

Bank wise data is given in Table No. 26 & 27 Atal Pension Yojana (APY)-Status

Numbers in actuals

Banks 2015-16 2016-17 31.10.2017 30.11.2017

Public Sector Banks 81537 82353 99484 114682

Pvt. Sector Banks 5029 8266 7354 8590

Regional Rural Banks 47050 24482 15322 16050

Cooperative Banks 2096 492 16 2556

Dept. of Post 177 468 146 167

Grand Total 135889 116061 122322 142045

Bank wise data is given in Table No. 26 & 27


AGENDA NO-12

NON-PERFORMING ASSETS (NPA)

Stressed assets have been consistently rising for the past few years. Here’s a look at the non-performing asset (NPA) in the chart.

SECTOR WISE NPA (Amount in crores)

Sector Sep-16 Mar-17 Sep-17 Y-o-Y

variation

Y-o-Y variation

%

Variation over

Mar-17

% variation

over Mar-17

Total exposure

O/s as on

30.09.17

% NPA of the

portfolio as on 30th

Sep-17

Agriculture 6480 7398 8769 2289 35.32 1371 18.53 88963 9.86%

MSME 2807 3220 3678 871 31.04 458 14.24 40898 8.99%

Education 121 110 118 -2 -2.02 8 7.41 1939 6.09%

Housing 532 539 802 270 50.75 263 49.43 20677 3.88%

Others 666 575 575 -91 -13.66 0 0.00 6469 8.89%

Priority Sector

10606 11842 13943 3337 31.46 2101 17.74 158947 8.77%

Non-Priority 3075 4601 5951 2876 93.54 1350 29.35 98797 6.02%

Total NPA 13681 16443 19894 6213 45.41 3451 20.99 19894

Total Advances

220042 240064 257744 37702 17.13 17680 7.36 257744

NPA % 6.22 6.85 7.72 1.50 1.50 0.87 0.87 7.72

*Others include-Social infrastructure, Renewable energy, loans to SHGs/JLGs, Loans to distressed persons other than farmers etc. The issue is put up for discussion OVBSERVATIONS

▪ Gross NPA to Gross Advances in banks grew from 3.82% in FY15 to 7.72% in FY17. Y-o-Y increase in NPA was Rs. 8288 crores as of 30th September 2017.

▪ Private sector banks maintained lowest gross non-performing assets to gross advances at 3.09 % in Sep-17 as against 7.51% for Public sector banks.

746211606

19894

3.82%

6.22%

7.72%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

0

5000

10000

15000

20000

25000

.Sep 2015 .Sep 2016 .Sep-2017

Chart showing NPA amount & NPA % to total advancesAmount in crore

NPA

NPA% to Total Advances


▪ Agriculture sector at 9.86% NPA of the portfolio was top amongst other sectors, followed by MSME at 8.99% during September-17 quarter.

TOP 20 BANKS IN M.P. AS ON 30.09.2017 IN TERMS OF NPA% TO TOTAL ADVANCES

Bank wise position is shown in table no. 13 NON-PERFORMING ASSETS UNDER GOVERNMENT SPONSORED SCHEMES TRENDS (NPA Accounts in numbers)

6.46

6.79

6.93

8.64

11.01

11.54

12.17

13.29

13.93

14.90

15.19

16.02

16.52

18.39

18.42

22.86

24.05

24.30

26.04

28.92

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

Canara Bank

Union Bank of India

Punjab and Sindh Bank

Punjab National Bank

Indian Bank

Central Bank of India

Jammu and Kashmir Bank

DCCB

Allahabad Bank

UCO Bank

CMPGB

Syndicate Bank

Bank of Baroda

Oriental Bank of Comm.

Dena Bank

Bank of Maharashtra

United Bank of India

IDBI Bank

MGB

Indian Overseas Bank

NPA %

25933

57819

85346

CMRHM

.Sep-15 .Sep-16 .Sep-17

0

13866

18830

MMYUY/MMSY

.Sep-15 .Sep-16 .Sep-17

1266715586

17850

SHGs

.Sep-15 .Sep-152 .Sep-17


STATUS (as on 30.09.2017) Amount in crores

Name of the scheme Outstanding NPA NPA%

No. Amt. No. Amt. No. Amt.

MMYUY/MMSY 113334 2909.00 18830 201.79 16.61 6.94

PMEGP 26686 826.44 4136 100.15 15.50 12.12

CMRHM 598365 4593.02 85346 551.93 14.26 12.02

SHGs 121598 631.04 17850 69.29 14.68 10.98

OBSERVATIONS

▪ Increasing delinquencies in government sponsored schemes appear to be on a high side and a matter

of concern for the Banks.

▪ In terms of number of accounts, delinquency ratio is more than 10% of the portfolio, whereas overdue

position is also alarming.

▪ It is gathered that the Task Force meetings have become a routine meeting and the purpose for

which they have been formed is defeated. In this regard, some suggestions are as given below.

a) The proposals received from the entrepreneurs should be screened by a committee consisting

of professionals, including banker to evaluate the capability of the applicant both technical

and financial. This should be an ongoing process and not an event. The report of screening

committee should be placed before the task force for approval.

b) To provide hand-holding support to the prospective entrepreneurs.

c) Training to the entrepreneurs through Entrepreneurship Development Programmes (EDPs).

The EDPs should be more objective and professional, so that required traits can be inculcated

in the entrepreneurs.

d) Monitoring and hand-holding support after financing needs to be in place.

e) Forward and backward linkages to these entrepreneurs may be explored.

REVENUE RECOVERY CERTIFICATES

▪ To facilitate the banks in recovery of their dues with borrower, the state Government passed

“The Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam in 1987.

▪ Purpose was to recover the public money and reutilized for their developments.

▪ The Collector or his subordinate officer specified on receiving the certificate shall take steps

to recover the amount stated therein.

▪ To encourage the respective officers/staff for recovery, incentive scheme BRISC (Bank

Recovery Incentive Scheme) was introduced on 1st April 1995.

▪ But it is observed that purpose of the scheme is not getting desired result, which is evident

from the below mentioned table.


BRISC STATUS [Period from 01.04.2010 to 10.12.2017] Amount in crores

Sr. Particulars

Number in lac

Amount

1 Submitted by Banks 7.03 9913

2 Forwarded by Their Nodal Dist. Branch(s) 6.21 8569

3 Allotted by District Administration to Revenue Officers 5.73 7915

4 Demand Notice issued by Revenue Officers 4.32 6295

5 Recovery received against Demand Notices 0.32 293

6 Disposed of RRC(s) By District Administration 0.04 25

7 RRC(s) Pending for Disposal 4.28 6003

Source: BRISC Portal, DIF, Govt. of M.P.

The following districts did not dispose off even a single RRC during the period from 01.04.2010 to 10.12.2017 Numbers in actuals & Amount in crores

Sr. District Name Demand Notice

issued by Revenue Officers

Disposed Off RRC(s) By District Administration

RRC(s) Pending for Disposal

No. Amount No. Amount No. Amount

1 Anuppur 1097 11.41 0 0 1097 11.41

2 Ashoknagar 11906 178.06 0 0 11906 178.06

3 Bhind 9015 151.84 0 0 9015 151.84

4 Datia 4423 53.43 0 0 4423 53.43

5 Dindori 3410 679.95 0 0 3410 679.95

6 Jabalpur 8540 102.61 0 0 8540 102.61

7 Jhabua 6657 46.41 0 0 6657 46.41

8 Khandwa 7446 75.65 0 0 7446 75.65

9 Mandla 2855 20.79 0 0 2855 20.79

10 Sheopur 2822 35.69 0 0 2822 35.69

11 Sidhi 1006 18.87 0 0 1006 18.87

12 Singrauli 722 11.19 0 0 722 11.19

13 Umaria 1310 8.73 0 0 1310 8.73

Source: BRISC Portal, DIF, Govt. of M.P.


PENDING APPLICATIONS WITH DISTRICT ADMINISTRATION FOR TAKING PHYSICAL POSSESSION OF THE PROPERTIES UNDER SEC-14 OF THE SARFAESI ACT AS ON 30.11.2017

Sr. District Total no. of

pending cases

Sr. District Total no. of pending

cases

1 Anuppur 14 19 Khargone 2

2 Barwani 1 20 Mandsaur 4

3 Balaghat 5 21 Morena 1

4 Betul 2 22 Narsinghpur 1

5 Bhind 8 23 Neemuch 1

6 Bhopal 52 24 Raisen 6

7 Chhindwara 7 25 Ratlam 1

8 Datia 5 26 Rewa 7

9 Dewas 4 27 Sagar 5

10 Dhar 2 28 Satna 2

11 Dindori 8 29 Sehore 5

12 Guna 1 30 Seoni 4

13 Gwalior 3 31 Sidhi 1

14 Hoshangabad 13 32 Shahdol 21

15 Indore 71 33 Shajapur 5

16 Jabalpur 29 34 Ujjain 4

17 Katni 9 35 Umaria 4

18 Khandwa 4 36 Vidisha 12

TOTAL 324

▪ Despite raising the issue of pending applications with district administration for taking physical

possession of the properties under Section 14 of SARFAESI Act on several platforms, things are not

moving satisfactorily.

▪ Cases are not being disposed off within stipulated timeline.

▪ Some District Magistrate (DM), while acting upon the application moved by banks, are still taking

a long time in handing over possession of the secured assets.

▪ It has been reported by the field functionaries that even the orders passed by District

Magistrates for handing over physical possession of the secured assets are not being executed

by the Tehsildars. They start hearing afresh, which inordinately delay the process and is

against the provision of SARFAESI Act; beyond their jurisdiction.

▪ In case of any discrepancies, cases either should be rejected or appropriate order need to be

passed.

▪ We request the state government to issue a suitable instruction to district administration to

comply with the amended provision of Section 14 of SARFAESI Act 2016, which stipulates

that DM will have to pass suitable orders for the purpose of taking possession of the secured

asset within a period of Thirty Days from the date of application. If no order is passed within

said period for reasons beyond the control of DM, he may after recording reasons, pass orders

within such further period but not exceeding in aggregate sixty days.



AGENDA NO-13

MICRO, SMALL & MEDIUM ENTERPRISES (MSMEs)

• MSME is the largest employment creator after primary sector. There are around 3 lakh

registered units of MSMEs in Madhya Pradesh. In the state, 30% of population is in the age

group of 15-30 years; indicates huge potentiality for employment growth. Madhya Pradesh

Government has been supporting entrepreneurs/ Self-Employment by providing an enabling

environment for job creation and entrepreneurship.

• Monitory Policy of RBI has channelized the flow of credit. Accordingly, all banks operating in

India have to necessarily lend 40% of their total loans to priority sectors. Out of this, 7.5 percent

of ANBC should go to micro enterprises.

Outstanding amount in crores

STATUS MSME (PRIORITY SECTOR) AS ON 30.09.2017 Amt. in crores

Sr. Particulars

30.09.2016 31.03.2017 30.09.2017 % Y-o-Y

variation

(Amt.)

%

variation

over

Mar-17

(Amt.)

No. Amt. No. Amt. No. Amt.

A Total of MSE Advances (Micro & Small

Enterprises) 863151 31843 954142 35561 1120842 36296 13.98 2.07

B % age of lending to Micro

enterprises to MSE 89.71 48.96 89.83 49.34 90.56 49.71 0.74 0.37

C Total advances to Micro Enterprises 774329 15591 857096 17546 1015038 18042 15.72 2.83

D % of advances to Micro Enterprises

to total advances 6.67 7.09 6.36 7. 31 8.97 7.00 -0.09 -0.31

E Total advances to Small Enterprises 88822 16252 97046 18015 105804 18254 12.32 1.33

F Total advances to Medium Enterprises 4568 3734 5213 4098 5111 3989 6.84 -2.66

G Khadi & Village Industries 5660 177 5977 149 5076 121 -31.72 -19.04

H Others under MSMEs 10337 1994 15231 1076 16418 492 -75.31 -54.24

I Total advances to MSME

Enterprises (Total of A,F,G &H) 883716 37747 980563 40884 1147447 40898 8.35 0.03

J Total Advances 11600603 220042 13474467 240063 11316770 257744 17.13 7.37

K NPA under MSMEs 180317 2807 197980 3220 223059 3678 31.04 14.24

L % NPA of the portfolio 20.40 7.44 20.19 7.88 19.44 8.99 1.56 1.12

Bank wise outstanding advances to MSME under Priority Sector is shown in Table no. 5

17227

2234926509

30082

40887 40898

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18upto Sep-

17

Chart showing growth in MSME financing by Banks of last 6 years

Bank's Credit to MSMEs

Linear (Bank's Credit to MSMEs)


OBERVATIONS:

▪ The advances to MSME sectors under priority sector constitutes 25.73% of advances to priority

sector and 15.87% of the total credit of the banks.

▪ Year on year, growth rate of MSME advances was registered 8.35% as of Sep-17.

▪ Out of total MSME advances of Rs. 40898 crores as on 30th September 2017, advances to

Micro Enterprises was Rs. 18042 crores which is 7.00% of total credit, which is below the

prescribed Norm of 7.5%.

▪ Lending to micro enterprises is 49.71% of total MSE advances, which is less than regulatory

prescription of 60% as on September 30, 2017.

▪ However, number of micro enterprise accounts is showing 31% annual growth during 30th

September2017, which is above the regulatory Norm i.e. 10%.

▪ Year-on-year growth in credit to micro and small enterprises was 13.98% during September

30, 2017, which is less than the prescribed Norm of RBI i.e. 20%.

BANK’S ROLE IN EMPLOYMENT GENERATION THROUGH 3 FLAGSHIP SCHEMES OF THE

STATE GOVERNMENT.

Apart from above, banks are playing an important role in employment generation in the state though

financing under PMEGP, NRLM, NULM, Mudra, Stand-up India schemes etc.

PERFORMANCE UNDER ANNUAL CREDIT PLAN FY 2017-18 UNDER MSMEs Amount in crores

Sr. Sub Sector

Target for the FY 2017-18

Achievement during

Q-2 of FY

Achievement

% (Amt.)

Financial Year 2016-17

2017-18

No. Amt. No. Amt. Target

(Amt.)

Achieveme

nt during

Q-2 of

FY16-17

Achiev

ement

%

1 Micro Enterprises 315927 11493 224149 5297 46.09 * *

2 Small Enterprises 21729 2865 17466 3707 129.38 * *

3 Medium Enterprises 11803 1101 1805 1446 131.36 * *

4 KVIC 11183 910 585 27 2.92 * *

5 Other under MSME 83667 2072 5775 333 16.05 * *

6 Total MSME 444309 18441 249780 10809 58.61 16123 10408 64.55

*There were no specific target

51559

73676

101495

42814

0

20000

40000

60000

80000

100000

120000

2014-15 2015-16 2016-17 2017-18 uptoSep-17

Year wise number of employment generation through bank finance

3 Mukhyamantri EmploymentGeneration Schemes


FRAMEWORK FOR REVIVAL AND REHABILITATION OF MICRO, SMALL AND MEDIUM ENTERPRIESES The Ministry of Micro, Small and Medium Enterprises, Government of India vide their Gazette Notification dated May 29, 2015 has notified a “Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises”. The objective was to create a simpler and faster mechanism to address the stress in the accounts of MSMEs and to facilitate the promotion and development of MSMEs. The revised framework on rehabilitation of sick micro and small enterprises, is applicable to MSMEs having loan limits up to Rs. 25 crore, including accounts under consortium or multiple banking arrangement. Corrective action plan (CAP) may include rectification or restructuring or restructuring. RBI has also advised all Scheduled Commercial Banks (excluding RRBs) to put in place a board to address the stress in the accounts of MSMEs. The following action points are required from the Banks

▪ Confirmation of formation of a committee for this purpose and holding meeting on regular basis.

▪ Number of cases resolved under the framework. Also out of these, number of case recommended

for rectification, restructuring and recovery.

▪ Details of other options explored by Banks to resolve the stress in the accounts.

All Banks are requested to provide above information on quarterly basis along with the data of SLBC.


SUGGESTIONS FOR INCREASING MSME FINANCING AND RESOLVING BOTTLENECK FACED BY MSMEs

a) Standard templates for assessment of SME Credit needs

b) Extensive use of Udyami Mitra Portal of SIDBI to fetch loan applications

c) Incentive scheme for Industry and banks to promote TReDS platform for discounting of trade

receivables

d) Cluster based lending approach to well-defined and recognized sectors

e) Devise suitable schemes/ products as per the requirement of the clusters

f) Leveraging multiple data sources to build sophisticated/ analytics driven credit models to move

to “real” cash flows based lending

g) Gearing up IT systems to capture and utilize data from GST and UID infrastructure

h) Creation of a market place for procurement of Goods & Services, like GeM

i) Partial Collateral be permitted in loans guaranteed by CGTMSE

j) Capacity building of entrepreneurs- activating EDIs and establishing more EDIs for skilling,

mentoring, developing and upgrading the entrepreneurial skills

k) Inclusion of Retail Trade under Credit Guarantee Schemes

l) MSME definition to be re-visited (turnover of the units may be considered)

m) Government Departments may also onboard on TReDS platform


AGENDA NO-14

OTHER AGENDA

ENAGAGEMENT OF LEAD DISTRICT MANAGERS (LDMs) IN ACTIVITIES OTHER THAN PRESCRIBED BY RBI In order to implement government sponsored schemes and to have better coordination between the government and the banking fraternity, the “Lead Bank Scheme” was introduced by the RBI under which the Banks are supposed to appoint Lead District Manager in each district. The scheme is working successfully across the country. The effectiveness of Lead Bank Scheme generally depends upon the dynamism of District Collector and Lead District Manager. RBI in their master circular has clearly defined the role of LDMs, which has been enclosed hereto. As per the scheme, the LDM is expected to undertake leadership for coordinating the efforts of credit institutions and government agencies. Of late, it has been observed that along with the coordination job, LDMs are also made to work for complaint redressal. The State Government has brought in a very comprehensive grievance redressal mechanism through Chief Minister's help line wherein the different levels of redressal of complaints have been defined by the government. The first level of redressal is L-1 and for all complaints related to activities, the LDM is made grievance redressal officer at Level-1. Due to vast network of bank branches and large number of schemes under implementation, the volume of complaints received is huge and the time period allotted to the L-1 officer for redressal is 7 days. As such, major chunk of the LDM’s time is being consumed in grievance redressal and in the process, the main focus on coordination and developmental activities in the district gets impaired. Time and again, this issue has been taken up with Directorate of Institutional Finance of the state government and other appropriate forum. But, it is yet to be resolved. We suggest that under the grievance redressal mechanism (CM Help Line), the government may assign the role of L-1 officer to an officer of the concerned department of the government whose schemes are being financed by the Banks. This will not only help quick disposal but will also enable the LDMs to concentrate on their primary role of coordination between different stake holders for successful implementation of various schemes. However, the LDM will continue to provide grievance redressal to the extent possible at DLCC meetings. In the recently held workshop of LDMs organized by RBI on 6th & 7th December 2017, 48 out of 51 LDMs of the State had attended the same. All raised their serious concern about this arrangement as a hindrance to their job role as defined in the LBS scheme. The matter is placed for discussion.


ON-LINE WEB PORTAL FOR DATA COLLECTION FOR DCC/DLRC MEETINGS DCC (District Consultative Committee) is an important forum at district level for bankers as well as Government agencies/departments to facilitate coordination in implementing various developmental activities under the Lead Bank Scheme. District Collector is chairman of this committee and its meeting is convened by LDMs at quarter intervals. It has been observed that collecting data from various banks for preparing the agenda of DCC/DLRC meetings is a difficult task for the LDMs. To facilitate the LDMs in this score, an on-line functionality has been created by SLBC, wherein, all the banks are supposed to upload branch wise/district wise data into the existing portal of SLBC. It will also help the LDMs to get data for the meetings of Block Level Banker’s Committee. This functionality has been created in such a way that Gram Panchayat wise and Block wise data also can be generated. Since, the above functionality will be operational from December-2017 quarter, the house is requested to adopt this functionality. The matter is put up for discussion.

AUTOMATIC SMS ALERT FACILITY IN SAMAST PORTAL Directorate of Institutional Finance, Govt. of M.P. has developed a software portal “SAMAST” (Software

Application for Monitoring Achievement of Scheme Target) to monitor the progress under Government

sponsored schemes. Banks and other respective departments have been shared login ID and password

to access the portal.

In order to ease the beneficiaries from visiting the bank branch to know the status of their submitted

application, an “automated sms alert facility” has been introduced from 27.11.2017. The beneficiary

will receive a sms at 6 various stages completed by the banks/departments on the portal.

This issue is placed for information.


AGENDA NO-15

SELF HELP GROUPS BANK LINKAGES

In the state of Madhya Pradesh, there are around 3 lakh Self Help Groups. Out of this, 2.31 lakh SHGs have been savings linked and 1.22 lakh SHGs have been credit linked cumulatively up to 30th September 2017. During Q-2 of FY 2017-18, 7010 SHG accounts were opened in the Banks. During current fiscal, 7287 SHGs were credit linked.

Sr. Particulars No.

1 No. of Rural Household in the State 11288946

2 Potential to form SHGs@13 members per SHG 868380

3 No. of SHGs cumulatively savings linked up to 30 Sep 2017 231316

4 No. of SHGs that can be formed and savings linked (2-3) 637064

5 No. of SHGs cumulatively credit linked up to 30 Sep 2017 121598

6 No. of SHGs to be credit linked (2-5) 746782

Bank wise data is shown in the table no. 19 Start-up Village Entrepreneurship Development Programme (SVEP)

• The Finance Minister in the budget speech of 2014-15 propose to set up a “Start-up village

Entrepreneurship Programme” for encouraging rural youth to take up local entrepreneurship

programs.

• SVEP is being implemented in MPSRLM in 3 districts (Barwani, Sheopur & Dindori) of Madhya

Pradesh.

• The objective of SVEP is to provide self-employment to the rural underprivileged group through

community managed and structured approach.

NPA in SHGs in Madhya Pradesh-Study Findings by NABARD

SHG Bank Linkage Programme is one of the leading poverty alleviation programme in India. In the past

few years, one issue is being repeatedly raised by the Stake holders that NPAs in SHGs are increasing

and there is need for coordinated efforts by all the stake holders to overcome the issue.

In this background, NABARD conducted study in 11 districts of Madhya Pradesh covering 18 branches

of commercial banks and RRBs. The study was conducted in those branches which were reported as high

NPA branches by banks. Major findings of the study are as given below:

1. 83% of the SHG accounts under old SGSY (Swarnjayanti Gram Swarojgar Yojana) were NPAs,

but the NPAs in SRLM (State Rural Livelihood Mission) and NABARD supported SHPIs (Self Help

Promoting Institutes) are negligible.

2. All NPA accounts covered under the study were financed in the year 2005-2006.

3. The SGSY accounts turned NPAs because the SHGs were not formed as per the basic principles

of SHGs viz. homogeneity, proximity, regularity in savings and meetings etc.

4. The activities identified for financing under SGSY was decided at the behest of the promoting

institutions/Govt. departments to meet the targets.

5. There was scanty arrangements for capacity and skill building of the members before taking up

the project.

6. Branch managers did not interact with group members before sanction of loan though formally

groups were graded by the grading team.

7. Branch Manager did not visit to the projects till it turned NPAs.


8. Out of 1184 SHGs under SRLM linked to the branches studied, 32 SHGs were NPAs which

account for 3% of the sample.

9. SRLMs NPAs were observed in old SRLM districts viz. Rewa, Shivpuri and Rajgarh. The reasons

observed are target approach for higher financing in first dose.

10. Branch Managers do not have time to follow the SHG accounts for regular repayment. They are

totally dependent on promoting institutions for follow up.

11. Hand holding support is not provided to SHGs. Etc.

Suggestions

▪ Banks may adopt recovery methods like one time settlement schemes, Lok Adalat and seek

support from District Administration for recovery of old loans.

▪ Banks may come out with recovery incentive schemes for SHPIs, BCs/BFs for recovery of loans.

▪ Banks may identify branch wise NPAs and take up the matter with SRLM at State level for

recovery of SGSY and SRLM loans. SRLM may involve their community based recovery

mechanism for recovery of such loans.

▪ Banks may take help of NABARD SHPIs in recovery of NPAs in their area and give them some

recovery incentives.

▪ PSBs may consider having dedicated vertical for financing under SHGs for regular follow-up

with SHPI and SHGs also.

▪ Digitization of SHGs can be an effective tool for monitoring the health of SHGs.

▪ The “Going Digital: programme may be used for spreading awareness about SHGs. Etc.

This issue is presented for information/discussion.

CREDIT FACILITY TO MINORITY COMMUNITIES, SC/ST & WOMEN

In terms of Reserve Bank's extant guidelines on lending to priority sector, a target of 40 per cent of

Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE),

whichever is higher, as on March 31 of the previous year, has been mandated for lending to the priority

sector by domestic scheduled commercial banks Within this, a sub-target of 10 per cent of ANBC or

Credit Equivalent amount of OBE, whichever is higher, as on March 31 of the previous year, has

been mandated for lending to weaker sections.

The Government of India has indicated that care should be taken to see that minority communities secure,

in a fair and adequate measure the benefits flowing from various Government sponsored schemes. All

commercial banks have been advised to ensure smooth flow of bank credit to minority communities. The

following communities have been notified as minority communities by the Government of India, Ministry

of Welfare:

• Sikhs

• Muslims

• Christians

• Zoroastrians

• Buddhists

• Jains


Outstanding & Disbursement to Minority Community

Total outstanding loans to minority community were Rs. 9132 crores as of 30th September 2017 and

541258 minority communities have been given loans till date. Banks have disbursed an amount of

Rs.1041 Crores covering 40891 beneficiaries of Minority Communities during half year of FY 2017-18.

Bank wise status is shown in Table no. 20 & 21

This issue is presented for information.

Outstanding & Disbursement to Scheduled Castes (SC) & Scheduled Tribes (ST)

As of 30th September 2017, total outstanding loans to scheduled caste & scheduled tribe community

were Rs. 13404 crores of 1426630 SC/ST beneficiaries have been given loans till date. With regard

to disbursement to SC/ST communities, banks disbursed an amount of Rs.1090 Crores during half year

of FY 2017-18.

Bank wise status is shown in Table no. 22 & 23


Outstanding & Disbursement to Women beneficiaries

As of 30th September 2017, total outstanding loans to women were Rs.22024 crores to 1554233

beneficiaries. Banks disbursed an amount of Rs.3932 crores to 292045 women beneficiaries during half

year of FY 2017-18.

Bank wise status is shown in Table no. 24



AGENDA NO-16

EDUCATION LOANS

STATUS IN MADHYA PRADESH As on September 30, 2017, the total exposure of all banks in Madhya Pradesh to education loans was Rs 2363 crore, which is marginally lower than the exposure of previous financial year i.e. 2384 crore. Banks face a 7.49% default on this portfolio – that is Rs. 177 crore. Out of total exposure of all the banks to education loans, contribution of Private sector banks is negligible and held the share of only 2.93%. Public Sector Banks have a share of 93.22%. Repayment is better in cases of loans above Rs. 10 lakh. Generally, the borrowers of these loans are settled abroad after study, and they get good employment and are able to repay their dues. Also, such loans are backed by collateral security. Students are very mobile. They move away from their place of study and it becomes very difficult to trace them. Looking to these difficulties, IBA has advised to obtain PAN/ Aadhaar details of the borrower/ co-borrower, however, it is not mandatory. Delinquency is highest in the bracket up to Rs 4.5 lakh Loans to individuals for educational purposes including vocational courses up to Rs.10 lakh irrespective of the sanctioned amount are classified under priority sector. Central Scheme to provide Interest Subsidy (CSIS) on education loans Under this Scheme, Interest Subsidy is given during the moratorium period i.e., Course period plus one year on Education Loan taken from the Scheduled Banks under the Model Education Loan Scheme of Indian Banks Association to students belonging to economically weaker sections whose annual parental income is up to Rs. 4.5 Lakh from all sources. The subsidy is allowed for undergoing recognized Professional/ Technical courses in recognized Institutions in India. This subsidy is allowed only once. Higher Education Loan Guarantee Scheme & Higher Education Loan Settlement Scheme The Government of Madhya Pradesh operates a “Higher Education Loan Guarantee Scheme” to provide guarantee to meritorious students, who are unable to provide collateral, in case of loans above Rs. 7.5 lakh. The state government has given guarantee to 92 students of Rs. 12.75 crore till September 30, 2017. In addition to above, in case of demise/permanent disability of the students, who had taken the education loans and their family is unable to repay the loan, “Higher Education Loan Settlement Scheme” is operational to provide reliefs to the family of the student. As on September 30, 2017, 6 cases has been settled of Rs. 15.46 lakh. FY 2017-18 TARGET VIS-À-VIS ACHIEVEMENT UP TO SEPTEMBER 2017 Directorate of Institutional Finance, Govt. of Madhya Pradesh allocated a target of 15000 cases of Rs. 300 crore for providing higher education loans by bank during current fiscal. As on September 30, 2017, banks sanctioned 11896 number of cases of Rs. 397 crore. Out of which, Rs. 263 crore was disbursed in 11504 accounts and achievement was 76.69%. Bank wise achievement was given in Table no. 18 This agenda is put up for information/discussion


AGENDA NO-17

National Scheduled Castes Finance & Development Corporation (NSFDC) BACKGROUND National Scheduled Castes Finance & Development Corporation (NSFDC), a Government of India Undertaking, is providing refinance to Banks for the regular paying accounts of eligible SC borrowers covered by Banks under their self-employment loans. As on date, 8 Public Sector Banks and 37 Regional Rural Banks have signed Memorandum of Agreements (MoAs) with NSFDC to channelize funds under NSFDC schemes to provide low interest benefit to the regular accounts. The State Governments operate their own schemes providing capital and interest subsidy to the Scheduled Caste entrepreneurs in their States. These subsidies are combined with the Bank loans for self-employment oriented income generating activities intended to reduce the loan burden on the SC borrowers and assist them in economic upliftment. Madhya Pradesh is one such State which implements subsidy schemes through the Banking channel. NSFDC would be interested in tie up with Banks to provide lower interest for loans to eligible SC borrowers under all the three flagship schemes of the state government i.e. Mukhya Mantri Yuva Udyami Yojana, Mukhya Mantri Swarojgar Yojana & Mukhya Mantri arthik Klayan Yojana. This agenda is put up for discussion.

Any other issue with permission of the Chair…….

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